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IMAGE  EVALUATION 
TEST  TARGET  (MT-3) 


V. 


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^ 


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^ 


1.0 


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11.25 


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Hi 

■  40 


1.4 


IIIM 

2.0 

1.6 


V] 


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cP 


Photographic 

Sciences 

Corporation 


23  WEST  MAIN  STREET 

WEBSTER,  N.Y.  14580 

(716)  873-4503 


>^ 


i     C^.< 


C/j 


^ 


CIHM/ICMH 

Microfiche 

Series. 


CIHIVI/ICMH 
Collection  de 
microfiches. 


Canadian  Institute  for  Historical  Microreproductions 


Institut  Canadian  de  microreproductions  historiques 


1980 


Technical  and  Bibliographic  Notes/Notes  techniques  et  bibiiographiques 


The  Institute  has  attempted  to  obtain  the  best 
original  copy  available  for  filming.  Features  of  this 
copy  which  may  be  bibliographically  unique, 
which  may  alter  any  of  the  images  in  the 
reproduction,  or  which  may  significantly  change 
the  usual  method  of  filming,  are  checked  below. 


L'Institut  a  microfilm^  le  meilleur  exemplaire 
qu'il  lui  a  M  possible  de  se  procurer.  Les  details 
de  cet  exemplaire  qui  sont  peut-Atre  uniques  du 
poinv  de  vue  bibliographique,  qui  peuvent  modifier 
une  image  reproduite,  ou  qui  peuvent  exiger  une 
modification  dans  la  mdthode  normale  de  filmage 
sont  indiquis  ci-dessous. 


D 


Coloured  covers/ 
Couverture  de  couleur 


□    Coloured  pages/ 
Pages  de  couleur 


I      I    Covers  damaged/ 


Couverture  endommagde 


n    Pages  damaged/ 
Pages  endommag^es 


D 
D 


D 


Covers  restored  and/or  laminated/ 
Couverture  restaurie  et/ou  pellicul6e 


Cover  title  missing/ 

Le  titre  de  couverture  manque 


I      I    Coloured  maps/ 


Cartes  giographiques  en  couleur 


Coloured  ink  (i.e.  other  than  blue  or  black)/ 
Encre  de  couleur  (i.e.  autre  que  bleue  ou  noire) 


□    Coloured  plates  and/or  illustrations/ 
Planches  et/ou  illustrations  en  couleur 


□    Bound  with  other  material/ 
Reli6  avec  d'autres  documents 


D 
D 

n 


Pages  restored  and/or  laminated/ 
Pages  restaur^es  et/ou  pellicuides 

Pages  discoloured,  stained  or  foxed/ 
Pages  d^colories,  tacheties  ou  piqu^es 

Pages  detached/ 
Pages  d6tach6es 

Showthrough/ 
Transparence 

Quality  of  print  varies/ 
Quality  indgale  de  I'impression 

Includes  supplementary  material/ 
Comprend  du  materiel  suppldmentaire 


D 


D 


Tight  binding  may  cause  shadows  or  distortion 
p^ong  interior  margin/ 

La  reliure  serr^e  peut  causer  de  I'ombre  ou  de  la 
distortion  le  long  de  la  marge  int^rieure 

Blank  leaves  added  during  restoration  may 
appear  within  the  text.  Whenever  possible,  these 
have  been  omitted  from  filming/ 
II  se  peut  que  certaines  pages  blanches  ajout6es 
lors  d'une  restauration  apparaissent  dans  le  texte, 
mais,  lorsque  cela  dtait  possible,  ces  pages  n'ont 
pas  6X6  film6es. 


Only  edition  available/ 
Seule  Edition  disponible 

Pages  wholly  or  partially  obscured  by  errata 
slips,  tissues,  etc.,  have  been  refilmed  to 
ensure  the  best  possible  image/ 
Les  pages  totalement  ou  partiellement 
obscurcies  par  un  feuillet  d'errata,  une  pelure, 
etc.,  ont  6t6  filmdes  6  nouveau  de  fagon  6 
obtenir  la  meilleure  image  possible. 


D 


Additional  comments:/ 
Commentaires  suppl6mentaires; 


This  item  is  filmed  at  the  reduction  ratio  checked  below/ 

Ce  document  est  film6  au  taux  de  reduction  indiqu6  ci-dessous. 

10X  14X  18X  22X 


y 


26X 


30X 


12X 


16X 


20X 


24X 


28X 


32X 


tails 
i  du 
odifier 
une 
mage 


The  copy  filmed  here  hes  been  reproduced  thanks 
to  the  generosity  of: 

Douglas  Library 
Queen's  University 

The  images  appearing  here  are  the  best  quality 
possible  considering  the  condition  and  legibility 
of  the  original  copy  and  in  keeping  with  the 
filming  contract  specifications. 


Original  copies  in  printed  paper  covers  are  filmed 
beginning  with  the  front  cover  and  ending  on 
the  last  page  with  a  printed  or  illustrated  impres- 
sion, or  the  back  cover  when  appropriate.  All 
other  original  copies  are  filmed  beginning  on  the 
first  page  with  a  printed  or  illustrated  impres- 
sion, and  ending  on  the  last  page  with  a  printed 
or  illustrated  impression. 


The  last  recorded  frame  on  each  microfiche 
shall  contain  the  symbol  ^^  (meaning  "CON- 
TINUED "),  or  the  symbol  V  (meaning  "END  "), 
whichever  applies. 


L'exemplaire  film*  fut  reproduit  grAce  A  la 
gAnArositA  da: 

Douglas  Library 
Queen's  University 

Les  images  suivantes  ont  6t4  reproduites  avec  le 
plus  grand  soin,  compte  tenu  de  la  condition  et 
de  la  nettet*  de  l'exemplaire  film6,  et  en 
conformity  avec  les  conditions  du  contrat  de 
filmage. 

Les  exemplaires  originaux  dont  la  couverture  en 
papier  est  ImprimAe  sont  fiimis  en  commenpant 
par  le  premier  plat  et  en  terminant  soit  par  la 
dernlAre  page  qui  comporte  une  empreinte 
d'impression  ou  d'illustration,  soit  par  le  second 
plat,  selon  le  cas.  Tous  les  autres  exemplaires 
originaux  sont  film6s  en  commen9ant  par  la 
premiere  page  qui  comporte  une  empreinte 
d'impression  ou  d'illustration  et  en  terminant  par 
la  dernlAre  page  qui  comporte  une  telle 
empreinte. 

Un  des  symboles  suivants  apparaitra  sur  la 
dernidre  image  de  cheque  microfiche,  selon  le 
cas:  le  symbole  ^»>  signifie  "A  SUIVRE  ",  le 
symbole  V  signifie  "FIN". 


Maps,  |.!»t«. .  cn&rts,  etc.,  may  be  filmed  at 
different  r^c  jction  ratios.  Those  too  large  to  be 
entirely  included  in  one  exposure  are  filmed 
beginning  in  the  upper  left  hand  corner,  left  to 
right  and  top  to  bottom,  as  many  frames  as 
required.  The  following  diagrams  illustrate  the 
method: 


Les  cartes,  planches,  tableaux,  etc.,  peuvent  dtre 
filmis  d  des  taux  de  reduction  diff^rents. 
Lorsque  le  document  est  trop  grand  pour  dtre 
reproduit  en  un  seul  cliche,  il  est  filmd  A  partir 
de  I'angle  supArieur  gauche,  de  gauche  d  droite, 
et  de  haut  en  bas,  en  prenant  le  nombre 
d'images  nAcessaire.  Les  diagrammes  suivants 
illustrent  la  m6thode. 


irrata 
to 


pelure, 
in  d 


n 

32X 


1 

2 

3 

1 

2 

3 

4 

5 

6 

I 


H( 


REPORT 


OF  THE 


HON.  ISRAEL  T.  HATCH 


UPON  THE 


COMMERCIAL  RELATIONS 


OF   THE 


UNITED  STATES  WITH  THE  DOMINION  OF  CANADA, 


N 


TRANSMITTED  TO  THF. 


HODSB  OF  REPRESENTATIVES  BY  THE  SECRETARY  OP  THE  TREASURY  JANUARY  12, 1869, 
AND  REFERRED  TO  THE  COHMIHEE  ON  COMMERCE. 


WASHINGTON: 
GOVERNMENT    PRINTING    OFFICE. 

1869. 


L.? 


i 


i. 


i  -5 


'u 


I* 
H 


J^ 


.('- 


j: 


REPORT, 


H 


Washington,  January  V2,  1S(>}). 

To  tlio  ITononible  Iliuin  McCrLLocii, 

tSirri'tary  of  the  Treasury: 

_  Sill:  Tlio  ivsolution  of  iiKiiiiry  passi'd  by  tlio  IIousc  of  KcprosiMita- 

tives,  .luly  0,  18(5(»,  ami  ivccivcd  by  iiii%  calh'd  for,  first,  a  statonu'iit  of 
the  tra<le  and  coiiiiiu'ico  of  tbi*  lTnit«*d  State's  w  itli  tlu*  IJritisli  North 
Aiuericau  proviiiiTS,  and  the  rcvoniu*  derived  therefrom  since  the, 
termination  of  the  reeiproeity  treaty,  and  all  ehanj;es  in  CanjMlian 
'tiiritls  since  that  date;  second,  a  statement  of  the  comparative  import- 

— •  ance  of  American  and  C'anadian  channels  of  commerce  or  transportation 

i>'^  of  property  from  tlu^  west  to  the  seaboard. 

On  the  (ith  of  May,  1S07,  my  report  in  answer  to  these  in(piiri(>s  was 
subnutted  to  the  House  of  lieju'csentatives.  At  that  time  it  was 
imimssible  to  reach  conclusions  on  several  important  iM»ints  with  a  satis- 
factory dej^ree  of  certainty.  Scarcely  had  one  fiscal  y<»ar  of  the  Tniti'd 
Stattis  then  passed  since  the  treaty  had  ceased.  A  lar'ic  am«»uiit  of  the 
articles  on  luunl  free  under  the  tr«'aty  was  hunied  forward  from  the 
provinces  as  the  time  for  its  te-mination  ajumtached,  to  avoid  the 
duties  levied  afterwards.     A  corresponding-  ditiiinntioii  in  the  importa- 

^  tions  immediately  subseiiuent  naturally  ensue<i.     Ib'iice  a  comparison 

of  the  trade  during'  the  last  year  (►f  the  treaty  and  that  next  afterwards 

X.  would  have  yiehled  no  conclusive  inferenies. 

^  With  the  termination  of  the  treaty  our  commercial   iiiten*ourse  with 

the  provinces  is  ajiain  open  foi*  investi;iation  and  h'^islation,  or  diplo- 

^  mtitie  action,     llenewed  atteniion  has  been  drawn  to  it  by  the  etVorts  of 

P  the  Canadian  authorities  to  remove  the  dissatisliu-tion  of  their  jM'ople 

^  and  pronu)te  the  pr(>sperity  an«l  consolidation  of  the  new   domini(»n  l>y 

restoring?  the  course  of  trade  under  the  treaty,  thu,s  ^ivin}*-  its  natural 
commercial  connections  and  market  t»»  ea<*h  provin<*e. 

I  mnv  bey"  leave  to  submit  a  further  report  emlmdyin;;'  more  recent 
information,  the  result  of  the  examination  of  two  fiscal  years,  in  answer 
to  the  resolution  of  inipiiry  by  the  House  of  KcjMcsi'iitatives,  and  in 
pursuance  of  your  instructions  to  nu'  dated  March  I'T,  I.s<).S. 

TllADE    BETWEEN    THE     I  NITEl)    STATES    AND    CANADA    IJEFOKE    THE 

TREATY. 

^  The   ]>rinciple   of   freedom    in    our    commercial    exchanges  with  the 

North  American  IJritish  i)r«>vinces  has  at  all  times  received  the  apjuo 
Z  bation  of  the  leading'  stat<'smeii  of  this   nation,  without   distinction  of 

^  P'li'fy-     If  has  become  universally  i>opular,  an<l  is  <le»'i<le(ljy  in  iiarmony 

with  the  national  progress  and  enlarj»ed  s\»\vit  ui  the  ajj:e.  The  tenitory 
of  the  ])rovinces  is  exten<U'd  on  a  l>ouiu\ary  indented  with  onr  own 
across  the  cjmtinent.  Climate,  soil  and  the  cost  of  labor — the  main 
elements  of  value  in  cereal  luoductions — are  nearly  alike  in  both 
countries.  These  similitiules  no  doubt  sujij^csted  the  idea  of  r«'<'iprocal 
trade  and  commerce.  The  legislation  an<l  di]>lomacy  of  the  two  couiitiies 
tinally  gave  it  a  ])ractical,  though  i>artial,  ai»p!ication  in  the  adoption  oi' 
the  so-called  reciprocity  treaty.  The  princiide  of  the  treaty  itself  was 
to  x)ermit  the  interchange  of  the  iiroducts  of  each  country  fiee  of  duty. 


COMMERCIAL   RELATION'S    WITH   CANADA. 


It  wa.s  a  formal  iiiovi'iinMit  in  favor  of  virtual,  if  not  litonil,  rociimKrity; 
presenting  to  the  world  the  example  of  two  eonti^uoUH  nations  ahan- 
doninfx  suspicion  of  injury  from  eaeli  other,  and  praetiein^in  their  intt'r- 
eourse  the  best  prineiples  juofessed  in  modern  civilization.  Thii 
omissi(nis  in  the  treaty  and  its  limited  cliaract<'r  led  t<»  its  termination. 

A  brief  statement  of  our  commerce  with  the  Hritish  provinces^  and 
the  n*venue  derived  from  thou  before  the  adoption  of  the  treaty,  an«l 
durinj;  its  deca<le,  is  necessary  to  complete  a  i)roiK'r  history  of  the 
sui'cessive  changes  produccjl  in  our  connnercial  relatituis  by  its  ado]>ti<ui 
and  termination. 


EFFECTS  OF  THE  TUEATV  ON  THE   REVENUE  OF  THE  UNITED  STATES. 

The  treaty  led  to  a  1ar<>'ediminutiou  of  our  revenue  upon  the  northern 
frontier.  In  l.S.")4,  the  last  year  unatlected  by  the  treaty,  the  rev<«nue 
upon  articles  incl(ule<I  in  the  Ih'e  list  duriu;jf  subse(puMit  years,  and 
im|iorted  from  the  ]>roviuce  of  TauHda  alone,  anuntnted  to  more  than' 
.^l,L*4.'i,t().'},  an<l  from  all  tlic  I'ritish  provinces  now  included  in  the 
domini(Mi,  was  !j«l,r)l*4,4r»7.  Assumiu^jf  this  as  a  basis  of  calculation  in 
the  (jrdinary  mo(h*  of  computin;;  an  increase  of  revenue  for  the  live 
siu'cceding'  yeais,  the  revenues  would  have  been  $1),2r)7,r)<S0  in  the 
;iooi(.nj|te,  or  $l,sr)l,r)17  annually.  On  further  examination  it  would  be 
fouiul  that  the  revenues  would  have  increased  in  the  same  ratio  during 
the  remaiiiin;;'  years  of  the  treaty.  Ofdiial  Canadian  reports  show 
that  in  1S,V.»  the  amount  of  duties  colhM'ted  by  Canada  on  imports,  thw 
products  of  American  imlustry  from  the  Ignited  St  v\tes,  was  $l,S2r),l.Ti, 
in  l.s<;o  !!<l,7r){>,«H>S,  and  iu  ISOl  ><  1  ,.")S4,S!H;.  l)uri\vg  these  three  years 
tlu'  whole  value  of  property  imported  into  this  countiy  from  Canada, 
upon  which  <luty  was  levied,  was  only,  in  IS.IO,  $4.'U,r>.'52,  in  ISOO 
$;?r)S,240,  ami  in  l.S(H  !i<227,S.V.).  An  ex.nuination  of  subsequent  years 
yields  similar  results. 

The  aveijifi'e  amoiint  of  duty  annually  levied  and  collected  on  Canadian 
imports  in  these  three  years  would  not  exceed  !$7r),(M)()  annually  towanls 
defraying;'  the  yearly  ex|>ens<'s  of  <'ol]ection  and  j^uardin^  a  frontier  of 
inland  coast  six  thousand  miles  in  extent. 

On  a  cl(>se  examiimti(ni  it  would  be  found  that  a  larj»e  proporti<m  of 
the  duty  payin;;'  articles  im|»ortcd  fiom  Canada  consisted  of  commodities 
not  produced  in  that  country. 


Total  amount  of  flnty-prtyinj?  articles 
importod  into  the  tjnifetl  States  from 
C'unada 

Iron,  hardware,  and  salt  not  tlien  pro- 
duct'd  in  Canada 

Amount  of  Canadian  and  other  poods 
charged  with  duties  in  the  United 
States 


lf<:>6. 


1857. 


6(540, ;{7r>  I      |!()9I,097 


1858. 


1859. 


503, 995 


5:ji,oii 


1*36,  :J80  i        160,086 


i!:]i:j,953 

193,595 


1504, 969 
319,J)55 


119,:}58  I       185,414 


The  i)recedinj>"  statement  demonstrates  that  during  those  years  we  bad 
not  collected  aninially  duties  on  nuK'h  more  than  $1()(),()(K)  in  value  of 
merchandise  actually  produced  in  Caiuula,  yielding:,  on  an  average  of  20 
per  cent.,  about  82r),(K)()  annually.  The  following  is  a  comparative  state- 
ment of  the  productions  of  each  coiuitry  imported  into  the  other  and 
charged  with  duties  in  it,  showing  that  of  the  i)roductions  of  xVraerican 


COMMKRCIAL    RELATIONS    WITH   CANADA. 


labor,  Cansula  taxed  forty-five  times  as  great  an  amount  in  value  as  we 
taxe«i  of  lier  produetious : 


innfi. 


ih:>7. 


HoH. 


Products  of  United  SUitcs  payinpdtUv  in  Canada. .    ijT/.HI/iSJ     .^({/JO:?,  :{'2(» 
ProductH  (if  Canada  pnyitit!:  duty  in  I'nit*"*!  States. .  [         I'M),  ;WU  ,         100,  Urtli 


Value  if  American  products cliarped  witli  duty  in 
Canada  above  tlie  Canadian  jtioducts  charpcd 
with  duty  in  the  United  States 7,Ht4,!»M 


!5i4,r.-'4,r>ti:{ 


G,0.\[\,rM  !      4,  K If),  145 


Tbe  records  of  subse(|U«'nt  years  conrirm  the  same  eoiielusiou,  but  it  is 
not  <lesira)»Ie  to  juesent  unnecessary  or  reibiudant  statistics,  wiiicli  are 
<inly  useful  in  )M>litica]  economy  to  supply  (>xaniplcs  and  illustrations  (»f 
{••enend  princi|>les.  They  can  never  Im'  the  basis  of  principles  uhicli  are 
ji^rounded  in  the  nature  of  thin;;'s — the  relation  of  cause  to  «'lfect — the 
only  safe  teacher  of  measures  wliich  are  best  t(»  adopt  in  every  i)os.sil»le 
case. 

The  United  Stat<»s  aud  ('anada,  throu<>'hout  the  existence  of  the  treaty, 
ju'esented  the  anonndous  sp«>ctacle  of  two  bonh-r  nations,  with  an  array 
of  custom -hotises,  extending  along  tlu'ir  whole  coterminous  frontiers, 
sustained  in  oiw  country  at  an  expens<'  gn'utly  ex«eeding  the  revenues 
collected  through  them,  whih*  on  the  ojjposite  shore  was  found  an  cipialiy 
extended  c<u'don  of  imperial  customs'  buildings,  collecting  large  revenues 
from  taxing  American  c«)mmodities.  This  result  was  juoducecl  by  suc- 
cessive taiifl's  in  Canada,  intlicting  higher  duties  (in  some  cases  abnost 
luohibitory)  upon  the  chief  importations  of  the  products  of  Ameiieau 
lab(U\  Of  nearly  all  the  articles  nanied  and  made  tree  by  the  treaty,  a 
surplus  was  (common  to  both  countri«'s;  but  ('anada,  then  as  now,  had  no 
markets  so  i>rolitable  as  those  of  the  Knifed  States,  and  no  outlet  Ibr 
her  surplus  at  all  worthy  of  mention. except  this  country,  wln-re  they 
then  as  now  contributed  to  the  rcveniU'.  Ib-i-  legislation  reversed  the 
ordinary  course  of  trade,  that  a  nation  buys  where  it  sells.  Her  people 
sold  to  us,  and  were  ju'evented  by  her  tariffs  from  buying  of  us. 

The  nh)tives  ami  objects  of  her  tariffs  are  not  left  to  coiijecture.  'S\i, 
Gait,  financial  minister  of  (.'aiiada,  re[MU-ts,  March  1,  IstJO,  page  .>(».  as 
foHows : 

15y  extending  the  ad  rnlorem  principle  to  all  iinitditation.';.  and  thendiy  enroitinfrliiL'"  find 
dfvi'lopiiip  tliu  direct  trade  bftweeii  Canada  and  all  turtipn  cniintiies  by  si-Ji.  .•uhI  s.i  liir  bt  nc- 
fiting  the  sliipping  interests  of  Great  Mritain — an  object  which  is  pjirrly  atfiiincd  tlirmi^'li  the 
duties  being  taken  upon  the  value  in  tlie  market  wiicre  last  boufrlit — the  levy  u\'  ".pccilic 
duties  for  several  years  iiad  ei)ni|iletely  divcvtid  the  trade  of  Canada  in  teas,  sugars.  »X;c., 
&c.,  to  the  American  markets,  (our  Atlantic  cities, )  and  laid  destroyed  a  very  valuable 
trade  which  formerly  existed  from  the  St.  Lawrence  to  the  lower  provinces  and  West  Indies. 
It  was  believed  that  tlie  competition  of  our  canals  and  railmtid  system,  (via  Portlainl.) 
togetfuM"  with  the  iinproveineiits  in  the  navigatidu  of  the  lower  St.  I.awr;'u.'>',  justified  the 
belief  that  the  supply  of  Canadian  wants  might  be  once  more  made  by  spa,  and  the  benefits 
of  this  connneree  obtained  for  our  own  merchants  and  forwarders.  Under  this  convictiou, 
it  was  determined  by  the  government  to  apply  the  principle  ot  ud  calorem  duliesj. 

From  the  same,  juige  38: 

Any  increase  of  duty  wliich  has  been  placed  on  EnglLsii  goods  is  quite  indemnified  by  the 
dficrea.sed  cost  at  which  our  canals,  railways,  and  steamships  enable  them  now  to  be  deliv- 
ered throughout  the  province,  and  if  the  que.  tion  were  one  of  competition  with  Caiiadiuu 
manufacturers,  the  English  exporter  is  quite  as  well  off  as  before,  while  as  compared  with 
the  American  his  positioa  is  greatly  improved. 


6 


COMMERCIAL    IIELATIOXS   WITH    CANADA. 


TRADE    WITH     CANADA    SINC'K    TIIK     TRKATIKS,    AND     HKVENUK    ^'OW 

DKUIVKD  TIIKIiKl'KOM. 

I  HOW  suhiiiit  ii  statj'iiHMit  of'tra<l«*  ami  roiniiM-n cof  tin*  Uiiit<Ml  Htatt's 
with  North  Aiiu'riraii  Hritish  in'oviiici's,  and  n'vmiu's  derived  thoiv- 
troiii,  aH  furnished  to  nu*  hy  tln'  <*oIhM;tors  of  the  ditlerent  districitw: 

Total  rahw  of  thitif^  V'^V^^W  ""/^'"''«  ^'"'<^  f.rports  from  tnul  t<t  the  Jinfish 
pnn'incfs,  for  thv  yearn  ending  f/unc  3(),  18G7  and  ls(js,  and  duties 
nrcind. 


l'nit(Mj  HtateH,  ports  of — 


Va'.uti  of  imports. 


Chicatro ;§:«):,  7(;«)  (M) 

MihvHiikf.' I  '^H,  1H4  (K) 

Detroit 7"^(i,5iH7  (10 

Dniikirk f J),H47  00 

Saiidiishv '^,1»I7  0(» 

( :l.'V«l»iir(I Mi),  724  ri7 

Suspj'iiKioii  IJi  id^'e y,  47H,  •^40  00 

0.swpp( 7,004,  IW  2H 

Oudi'tishurp 1,  I7I,4-J4  00 

Cape  ViiKM^iit 70:5,  ir.O  00 

liostoii* a,  »»r>7,  '-ilS  (10 

N«\v  York I  1>H(),  IKJ:{  00 

Erie I  70,*J0()  00 

Portland t  2, 1*^^,  •240  00 

Grand  Haven j  'Mi  7.') 

Pembina 100,1^0  00 

Plattshurg I  1,S>HI,5H7  00 

Toledo '  '.>:<:), r.iH  no 

Rochester '  7:{0,7(»4  00 

ButlaU. ■  ;{,  ;rr7,  -247  00 

Port  Huron I,4:{:{  !•> 

Burliii srton 2,  :ioo,  47r>  00 

Totalt 2r),yi8,:io0  72 


Value  of  exports. 


Duties  rt'eeived 
in  gold. 


I,  ioi,ir>:t 
i,«ir)i,2r,i» 

:{,2U», 

'm:\,  i>:{7 

!t7,2ir) 

1,07S»,:<2(» 

27l>,  WC, 

.->:{,  o:{7 
:{,oii,Hi-i 
:{,r)i7, 14:; 

J1>U,(W() 
2, 352, n2o 


00 
00 
00 

00 
00 
(»0 
00 
00 
00 
00 
00 
00 
00 


:{»i2,4r.H  00 
r)i:{.:}2(5  oo 

JH(»,ltr>4  00 

14;»,0:J(»  00 

:WH,7S)2  00 

1,21>H,  |H<)  00 

4,(544,1100  00 


;?14H, 

7, 

140, 

2, 

I, 

ior>, 
:{24, 

l,lvi7, 
212, 

Hi, 

315, 

J«. 

151), 

IG, 

376, 

33, 

130, 

553, 

45, 

470, 


748 
1)79 
250 
(IOH 
443 
H-JH 
34H 


% 
1)9 
74 

m 

(53 
57 
61 


545  (55 

051  (54 

036  57 

5(57  00 

4HI 

:{53 

H20 

IOH 

1H() 

H89 

706 

195 

(579 

7;«5 

907 


0(» 
00 
(59 
71 
00 
43 
00 
41 
00 
2« 
00 


21,848,074  00 


5.  144,  1(J6  25 


•   Sonic  of  the  e.ollct  torn  iiii-lndi'd  free  goods  iu  their  roturui";  carefully  rxcliullng  Mji-hc,  the  actnul  duty- 
p:iyiii);  iinport.s  were  .*'.'2,'.U!»,.'j:i!(.  ^ 

t  KMtliniitcd. 

Of  the  tiscal  year  l<S07-'fi8  it  has  not  been  deemed  iieeeasary  to  give 

the  details.     The  foUowinj;  are  its  aggregate  results: 

Value  «)f  duty-pa>i!i<r  imports $24, 226, 683  00 

Exports 20,  343, 507  00 

Dutie.s  received  in  gold 5,400,000  00 

Tln'  following"  is  a  ciMidensed  view  of  the  eonnneree  of  Canada  with 
all  nations,  exhibiting  the  value  of  her  exports  to  and  iiiii>orts  from  Great 
lliitain,  her  eolonies,  and  foreign  I'ountries,  including  the  United  States, 
for  the  tiseal  year  ended  June  .'>(>,  one  year  before  and  cme  year  after  tlui 
termination  of  the  re(;ij)roeity  treaty.  The  tables  are  eoj)ied  from  the 
(►tiicial  returns  of  Canada.  The  intermediate  year  of  18({<>  is  omitted, 
the  year  when  tlu'  treaty  ended.  It  was  exceptional  in  its  character,  being 
large  quantities  of  different  articles  having  beeu  imported  into  the  United 


COMMERCIAL   RELATIONS   WITH   CANADA.  7 

SUit«H  in  aiitiei|>ati(>n  of  the  additional  |>i'ic('!  realiztMl  for  tliein  wlii>n 
the  (lutioH  on  Canadian  prodncts  were  again  enforced : 


Countries. 


Value  of 
exports. 


1865— Great  Britain 

North  American  colonies . 

British  West  Indies 

United  States  of  America 
Other  foreign  countries  . . . 

Total 


l.(H}5,0r>7 

4i,:n:t 
8:v»,  8r)(» 


Value  of 
imports. 


42,4Hl,ir>l 


f)II.57» 

2(»9,  :wi> 
•i;j,r^9,05r) 

:J,  274. 644 


:{H,  020, 469 


*  Excluilve  of  itpeciu  or  free  good*. 

The  following  tables  show  the  trade  of  the  dominion  of  (^anada  with 
the  United  States  and  other  conn  tries  for  1<S(»7,  the  tirst  year  after,  and 
nnatfect*Hl  by,  the  termination  of  the  ti'eaty : 

Summary  statement  of  the  value  of  imports,  duty  collected,  8fc.,  in  Ontario  and  Quebec  during 

the  fiscal  year  ending  June  :iO,  1867. 


o' 

a 

> 

FKOM  WHAT  COUNTRY 

IMPORTED. 

Imports. 

1 

British  colonies  of 
North  America. 

British  colonies  of 
West  Indies. 

United  States. 

1 

a 
i 
& 
1 

Amount  of  duty. 

Dntiable  goods  . . 

Free  goodi 

Coin  and  bullion. 

$35,'752,744 
16,  680,  926 

$26,227,818 
7  h:i3  l.'il 

$:)88,  673 
719,  700 

$130,264 
7,5;»8 

$6,060,013 
7,997,  137 
6,211,752 

2,005 

|2,  !Mr),  976 

323.  4(H) 

20 

$7,  001.  660  77 

6,411,312         'laa'.'VlO 

Foreign  reprintH 
of  British  copy- 
right works 

4,005 

Total 

59, 048,  987  ,  :J4, 260,  509 

1, 108, 373 

137,  802 

20,  S72,  907 

3, 869,  396 

7,001,660  77 

Summary  statement  of  value  of  exports  from  Ontario  and  Quebec,  articles  of  Canadian  produce, 

during  the  fiscal  year  ending  June  'M),  1867. 


Exports. 


Produce  of  the  mineB , 

Produce  of  the  fisheries 

I'roduce  of  the  forest 

Animals  and  their  products 

Agricultural  products 

Manufactures 

Coin  and  bullion 

Other  articles , 

Ships  built  at  Quebec 

Goods  not  the  produce  of  Cauada 


•a 

> 

o 


1541, 

784, 

13,  948, 

6,118, 

16.  7ti5, 

89.-,, 

2,916, 

416, 

1,00.-), 

1,678, 


234 
636 

Mi< 
6.39 
981 
767 

o:i4 

121 
076 
083 


C 


'£< 

u 

aa 


a 


9) 

B 


e 


$301, 
113, 

6,  889, 

2.  125. 

2,  770. 

li-ti, 

511, 

48. 

818, 

1,  196, 


105  ' 

936 

7,-3 

271 

yi»3 

•^m  ' 

6.V)  (. 

878 
440  I. 
948  ' 


$6,722 
113,7.')8 

31.011 

2*-'9,  026 

,  "ITfi,  (K)8 

183,  177 


1$  1 6,  860 

'     3, 408 

'     .3, 967 

8,  983 

20,  ,V.»7 


18,  887 
i  30,' 6(18' 


$333, 

115, 

6,831, 

3.  686, 

11,185, 

459, 

2.  404, 

347, 


327 
767 
252 
191 
227 
.391 
■M*4 
929 


a 
s 
o 


« 


320,332 


Total  value  of  exports 45,  070, 219     14,  962,  5(M  ;     3,  549, 197  '  53,  815  :  25,  583,  800 


o 


$80 

424,315 

193,  194 

14,184 

25, 470 

46, 402 


427 

]86,63<i 

30, 195 

920,903 


8 


COMMKKCIAL    UKLATIONS    WITH    CANADA. 


I   I 


Tli4>  niiiiii  fiMitiiroN  of  t1i<>  tnKic  of  t)M>  (loniiiiioii  of  CiiiuHla  is  itb  the 
lTnit<Ml  Stat<'s  and  (iiiMit  Jiritaiii  throiif>:ii  a  HriicN  of  ycaiH  air  i'orrcctly 
(^xprcNscd  in  the  above  tabh'H,  wliirli  arc  not  ahva.VH  accurate  in  dctaiU. 
The  ehan);<'N  in  tlicni  from  year  to  year  wliich  they  nuiy  exhihit  will  he 
found  to  exist  in  these  tluctuationsin  trade  produced  hy  the  hiwnof  supply 
and  (h'niand.  Ant'xaniinationof  the  aliove  ( -anadian  returns  sh<»\vs  that 
the  coninicii-e  between  the  two  countries  has  not  Ihm'Ii  materially  dis- 
turbed by  the  termination  (tf  th(>  reciprocity  treaty,  although  the  United 
States  have  rec«'ived  a  lai^<'  addition  to  their  revenue  from  tin*  <lutics 
paid  into  our  treasury  on  Canadian  productions.  It  discloses  the  addi- 
tional fact  that  the  Canadians  n«>w,  as  in  tinu's  past,  sell  to  us  an<l  buy 
of  Great  Itritain.  Tin*  contrast  between  '^'rt^iHHi,  (he  amount  of  reveniu^ 
annually  received  by  the  United  States  from  Canadian  imports  during; 
the  operation  of  tlu'  treaty,  and  tin*  lar^e  amount  rec<'ivcd  sine*'  its  ter- 
mination, will  occur  t«>  every  one.  It  will  also  be  remembered  that  the 
duties  exhibited  in  the  revenue  tables  already  ^iven  are  in  ^'old.  Com- 
put4'd  in  our  currency  they  exceed  >!J7,(MM>,(KM>,  annually.  It  is  a  si;;iiili- 
eant  and  important  consideration  that,  during  the  whole  existence  of  the 
treaty,  a  period  of  10  years,  the  United  States  colh'<'tc<l  ^i'MMMK),  while 
in  the  two  fiscal  years  I'lapsed  since  its  termination,  instead  of  .'!^7r»(),0(M>, 
we  have  coIhMted  aluait  !5<14,0(I(>,0(K),  in  our  own  currency.  While  our 
revenue  has  been  thus  increased  tluMc  has  been  no  loss  of  traih'. 

In  a  previous  rcptut  it  was  shown  that,  for  a  larp-  proportion  of  her 
productions,  Cana<la  is  |)lac<'d  in  the  position  of  a  i'armcr  who  has  only 
one  custouM'r.  llciu'c  tlie  value  «>f  our  markets  has  always  Iummi  hijihly 
appreciated  by  the  Canadians.  Their  parlianuMit  has  not  lM>sitatcd  to 
call  attention  to  the  ^rcat  ditfcrciKc  in  price  of  the  same  articles  in  the 
two  ('ountries;  and  the  practical  test  of  tln'  whoh*  (pu'stion  is  shown  by 
the  very  lar^c  inip(»rtations  made  fr<»m  Canada  into  this  country,  even 
now  when  hij^h  duties  ar(>  |>aid  on  them.  Nine  tenths  of  the  Cana<lian 
exports  to  the  United  Stat«'s  consist  of  products  of  the  foicst,  animals 
and  their  products,  and  the  juoducts  of  tlie  farm.  They  do  not  sensibly 
atfect  our  markets,  an<l  are  less  in  value  than  those  of  any  agricultural 
State  in  the  west.  They  have  no  nM)rc  p('rceptil>le  elfcct  on  our  markets 
than  the  waters  of  a  stream  c(")llecte<l  from  a  small  surface  have  upon  oiu' 
of  (uir  iidaiid  seas. 

In  fact,  the  daily  prices  current  at  Montreal  aiul  Toronto,  each  the  com- 
mercial nu'tropolis  of  its  pi'ovince,  and  the  index  to  the  prices  throu<;h- 
out  the  whole  "dominiim,"  an*  j;overiM'd  entirely  by  the  market  priiu'S 
in  the  United  States,  exchan«;(',  duty,  freight,  and  expenses  bein^i  added. 
This  is  shown  by  the  daily  commercial  reporls  in  Canada.  T!u'  view  thus 
taken  is  contirmed  by  the  collectors  of  customs  at  all  tin*  leading'  jMU'ts 
on  the  northern  frontier,  as  will  In*  seen  by  extracts  from  their  report^to 
me,  pven  in  the  appendix  hereto,  (see  A.) 

The  com|>arative  maj;nitu<le  of  the  flour  ami  pain  trade  of  New  York 
and  Montreal — each  the  commercial  centre  of  its  own  country — is  shown 
by  the  followiu};  tables,  comi)iIed  by  KInuue  II.  Walker,  a  j^entleman  who 
has  rendered  great  services  to  the  public  by  ditt'using  much  valuable 
stifctistical  infonnation  as  to  our  iidaud  commerce. 


COMMKUCIAL    UKLATION8    WITH    CANADA. 


9 


til  the 
rn'C'tly 
IctailH. 
will  be 
supply 
iVH  that 
llv  <Uh- 
Uiiitrd 
duties 
<•  a(l<li- 
U(l  buy 

I'Vi'IlUr 

(luring 
its  tt'i- 
hat  the 
Coni- 
si;;iiiti- 
i'  of  tlu' 
),  while 

hilt'  our 

1  of  her 
las  only 
I  highly 
tatcd  t«> 
s  iu  the 
lown  by 
ly, even 
aiuuliau 
auiiiials 
sensibly 
cultural 
uiaikets 
I  poll  (Mie 


TahlcM  ttliowinff  the  nriipfn  ami  cvftortH  of  flour  and  (ji'ttin  at  \iiv  York  und 
Montrciil  for  tUrcn  monthn  of  the  luntfo  ur  ifatrn. 


HVAIAVIH. 


ih4;h. 


leer. 


lH(ki. 


m\C}. 


V 


Idur. 


)blH. 


'^,Mi,V.r7       •,',  JtUt,  «7(>      2.HM,li7!»'    i>, •^•JH,  :jy;j 


Whoiit bun, 

( 'oru litiN . 

(  iHtM hllH  . 

Hfirlny Imih  . 

liyi' huM . 

I'UHS bu8 . 


f.'.Tdo,  liw  I    !».  41'',  i»74  :j,:.4i?,hmi  7.hu),:M7 

I-,  (w-.'.tuH      l4,i;iHl,-J(;((  •Jil.lWt,  s.Vj  ,  I4.7!I4.44(» 

iMMi:»,;ii(;     7,KMi,rMi  7.  (■.-".»,  :i.v,i  '.•,(i:.(;.7ini 

•,',  7 III. :i.M      tj, :.:»-', 7: ft'  4,'':i-J.7ttt;  -  y/.MM, ('*)(» 

7r.t». Ill',  i       7i.',t;7-  I , ••  I"", <'.7r.  '  r.77,r.u:» 

:<r.H,4iii  !       rM.'.,:!-'.  4iN;,r.H-j  '  iiu.riH*; 


Totnl  IxihIiuIh 45,  157,  .'m*^     :(;'>,  H71I,  X)     4\),'Jri,\,0b6  [  Xi,  ad:i,  7'^G 


KxrouTy. 


Flour bbl«. 


Wlicat b\iH. 

Colli bim . 

OhIs buH. 

Barley bun . 


IWH. 


914,730 

.".,  HI,' mo 

r.,  7  •.>:{,:«».'. 

Hi.7-^:{ 


l«n7. 


iKf,r.. 


iHr.5. 


Hai,:W2  !        849,297  '     1,270,110 


I'ea.s . 


b 


Total  busliols 


bus. 


I.'.:{,(il>:{ 


4,  ll»(!,  \-S.\ 

7,;<l(»,  40'.l 

1IH,:;4;'. 

4ir,'.i'.i.'. 
r.(ti,4i'i 


:hi>,  (id.". 

Ki.Hic,  :i(ii 

1,  i(>:{,  li.-M 

yii,'j:u 
l(H,i»7:? 


•J.  Oil  I,  l-r. 

:<,  4H(»,oi:» 

70.  .-*h; 

i:o,'('ii»4 

74.0411 


ii,(;i'.>,(W     i:t,.'.:{i,  147     i;{,4!ij,ijr>      .'.,-.-'(>,  0117 


RKCAIMTI  I-ATION. 


the  eoni- 
thi'oujih- 
I't  piiees 
<i  added, 
iew  thus 
uj»-  p(UtS 
eportai  to 

i'w  Yolk 
is  shown 
man  who 
valuable 


Year. 


Reccipt.s. 


Flour. 


Grain. 


\m^ W,(i(;4.407  4;'.,  l.'.7.r..V.' 

1W)7 'J.  400.  47»i  :{;.,  H71I,  r.H»; 

IHIM) 2,4!M,1)7!>  40, -i-^:}.  OnH 

160.") 3, -iHH,  ;{o;{  :r.,:K{,72'> 


Exports 


Flour. 


tturrelf. 
H44,7:{(» 
H'.j|,:t(i2 
H40,  .>07 

i,'.i7o,  no 


Grain. 


liushrh. 

II,0|0,02H 

i:j,r.:u,  I47 

|:{,41M,  145 

5,  nm,  007 


10 


COMMERCIAL   RELATIONS   WITH   CANADA. 


1 1 


TIh'  followiuji"  will  show  the  receipts  of  flour  and  grain  at  Montreal, 
by  rail,  river,  and  eanal, from  January  1  to  December  i,  18G8, and  exports 
for  the  same  period,  compared  with  corresponding  period  in  1807  : 


Flour bbls . . 

Wheat bus.. 

Corn bus.. 

Oats bus . . 

Barlfy bus . . 

Rye bus . . 

Peas bus.. 


Receipts. 


74H,  :W3 


Receipts. 
Id07. 


Exports. 
18«S. 


662, 400 


503, 946 


Exports. 
1867. 


200, 369 


2, 406, 2:W 

1,061,8IU 

125,802 

102, 195 

2, 71>7 

512, 778 


2,798,2.55 

1,123,717 

891,605 

735, 047 

280,.5(»7 

856, 192 

127,421 

458,915 

128,7()5 

6 

1,298,106 

642, 974 

1,446,637 

643,  .528 

898, 000 

166,038 

21,916 

1,741,, 558 


Total  bushels I     4,211, 623 


5, 524, 659 


3,816,851 


4,917,679 


The  essential  and  unehangeabh*.  eharacteristies  of  this  trade  are 
beyond  the  intlueiiees  of  temporary  legislation  on  either  si<le,  and  must 
be  gijvenied  by  those  leading  faets  as  to  geograidiy,  climate,  and  con- 
flgnrati<>n  of  the  <'ontinent,  which  were  more  particularly  set  forth  in  a 
previous  i-eport  already  subn^'tted  to  Congress. 

The  views  then  "\pressed  have  since  been  confirmed  by  the  unsuc- 
cessful ellorts  of  tin'  Canadians  to  negotiate  treaties  of  comm<'rce  in  a 
southward  direction  with  Cuba,  the  \Vest  Indies,  Mexico,  JJrazil,  as  well 
as  other  countries  in  South  Ameru'a,  and  to  extend  their  trade  with 
India  aiul  China.  The  distance  to  Cuba  from  Montreal,  by  way  of  ^he 
St.  Lawrence,  is  at  least  three  tinu's  as  great  as  through  the  United 
States. 

THE  RIVAL  CARRYINCt   SYSTEMS. 

To  understand  the  influence  of  our  resj)e(^tive  geogTaphical  i)ositions 
ii])on  the  commercial  intercourse  between  the  United  States  and  the 
"Domiiiiou  of  Canada,"  it  should  be  known  that  Port  Colborne,  on 
Lake  Erie,  in  the  ju'ovince  now  called  Ontario,  is  the  entrance  to  tin' 
AVellaiid  canal,  an<l  thence,  through  Lake  Ontario,  to  the  St.  Lawrence 
(;anals.  Butl'alo,  in  the  United  States,  and  oi)i)osite  Port  Colborne,  is 
the  entrance  to  the  Erie  canal,  leading  through  our  own  territory,  and 
via  the  Hudson  river,  to  our  seaboard. 

All  western  commerce  occui>ies  precisely  the  same  status  to  these 
important  i)oints,  whence  diverge  the  two  lines  of  water  c<mimunication, 
fretpiently  reganh'd  as  the  great  rival  routes  for  the  trade  of  the  north- 
west. A  glance  at  the  maj)  will  confirm  this  fact.  The  i)roi>osed  Niagara 
ship  canal  is  on  the  A'nerican  side,  and  parallel  to  the  Welland  canal, 
ami  if  constructed,  and  of  any  commercial  utility,  must  form  the  Ameri- 
can link  in  the  St.  LaAvrence  canals  through  Canada. 

The  following  is  a  staiement  of  the  rehitive  distances,  via  the  St. 
Lawrence  canals  and  the  Erie  canal,  to  New  York  and  Jioston,  the  two 
chief  northern  i>orts  of  the  United  States — the  saving  of  distance  in 
sending  to  New  York  being  an  ecpial  saving  to  all  the  more  southern 
and  Atlantic  ]K)rts: 

Miles. 

])istance  from  Port  Colborne  to  Montreal 500 

Distance  from  Montreal,  through  river  and  Gulf  of  St.  Law- 
rence, to  track  of  commerce  in  the  Atlantic 1, 000 


i 


COMMERCIAL   RELATIONS    WITH   CANADA. 


11 


IS 


Miles. 
500 

1,000 


Mile.s. 

Distance   from   Tort    Colbonie,  ria   St.  Lawrence   canals,  to 

Boston 2,  500 

Distance  from  Port  (N>lborne,  ri<(  St.  Lawrence  canj'.ls,  to  New 

York ;5, 000 

Distance  from   IJntfalo,  rIa  Erie  canal  an<l    IluWson  river,  to 

onr  seaboard 500 

During'  the  six  months  when  the  St.  Lawrence  ronte  is  oj>en,  it  is 
sehlom  sale,  owinj*'  to  stnni^'  currents,  immens(>  masses  of  ice,  and  fo<is 
almost  i>er])etnal,  tin'  latter  beinj;'  (paused  by  the  meetin^i;  of  the  tropical 
waters  with  those  l»r«)U^ht  down  from  tin*  polar  seas. 

Tlu'se  <i(M)j;rai>hical  facts  must  determine,  through  all  time,  the 
sui>remacy  of  our  markets  and  our  cariyin^'  systenjs  for  the  inland 
(M)mmerce  of  North  Anieri<'a.  uVdverse  lejiislation  by  onr  foici^ii  neijih- 
bors  may,  for  a  time,  deflect  ])ortions  of  our  iidand  and  foreign  com- 
merce from  the  natural  chamu'ls  of  in^^ress  and  e<;Tess  to  and  from  our 
Atlantic  cities,  but  only  to  re-act  to  the  h)ss  of  those  who  have  the 
temerity  to  try  the  experiment. 

We  liave  seen  by  the  tables  already  j)resent('d,  that  only  a  small  ju-o- 
portion  of  the  j^Tain  carried  to  Xew  York  is  <*xi>(U'ted  abroad.  Of  these 
exports  a  larjic  share  is  sent  to  the  \Vest  Indies  and  other  southern 
countries.  As  the  nuite  throujih  our  Atlantic  ports  to  the  ;;reat  ^rain- 
consuminji'  ami  manufacturinj^'  re<iions  of  our  eastern  States,  as  well  as 
to  the  foHMfiii  and  domestic  markets  south  of  Xew  Y'^ork,  and  supjdied 
with  j>Tain  and  Hour  from  the  United  States,  is  much  shorter  thi'ouj;h 
our  own  country  than  rin  the  St.  Lawrence,  the  vabu'  of  the  Knjilish 
j>rain  nmrket  is  wiuthy  of  investi«;ation,  althou,iih,  even  for  this,  the  route 
thr<my:h  the  United  States  has  suju'rior  advantaj>"es. 

fOMl'AlJATIVE   IMPORTANCE   OF   THE   EN(JLISII   (JK'AIN    MARKET. 

The  importance  of  Enf>land  as  a  nnirt  for  <;rain  in'oduce<l  on  this  con- 
tinent is  ^iTcatly  overrated.  In  1S4S  the  "corn  laws"  were  repeah'd. 
Our  farmers  confidently  expected  that  a  lar<;e  market  would  b«'  <»pened 
foi-  their  ji'iain.  But  the  imjxutations  into  (Ireat  IJritain  du .in^^  the 
12  vcars  subseijuent  to  the  repeal  were  live  times  as  lar^c  as  those  from 
the  Uuited  Stat<'s  within  that  ]»eriod.  Our  home  market  had  increased 
so  nuu'h  that  our  exiuuts  of  breadstulfs  to  Kn;iland  had  (h'creased  at 
least  27.^  per  cent,  in  proi>ortion  to  <nir  pojyulation.  Milwaukee  and 
(.'hicaji'o  ahme  often  send  off  in  1()  <lays  more  ^raiii  and  Hoar  than  Eng- 
land takes  from  us  in  a  year,  reckonin;;'  tl'.e  average  of  the  last  20  years. 
These  statements  are  not  based  ui)on  the  tlata  of  isolated  seasons.  The 
position  of  the  wheat-] uoducinj;"  poitions  of  the  liritish  possessions  on 
this  continent  makes  New  York,  for  them,  as  well  as  for  the  United 
States,  the  peat  northern  <-ontinental  (h'i>ot  for  shipping,  wlu'nce  h»w 
fn'iuhts,  arisin<4"  from  brisk  comjjetition,  are  found,  to  which  return 
carjioes  can  be  had,  and  whence,  throu<;hout  the  whole  year,  the  mer- 
<'hant  can  transmit  produce  either  to  Old  England.  New  ICn^land,  or 
southern  markets — thus  preseiitinj;'  to  the  western  farmer  ami  shipper 
great  advantages  over  Montreal. 

THE   AGGRESSIVE   POLICY   OP   CANADA. 

Canada  has,  during  the  last  quarter  of  a  century,  expended  $1 'iS.2;i5,413 
in  the  eonstruction  of  unprofitable  railways  and  canals,  with  no  local 
traffic,  population,  or  commercial  wants  commensurate  with  such  stu- 
pendous undertakings,  but  relying  upon  tln'  diversions  of  our  inland 
coiumerce  to  sustain  them.    The  motives  of  her  policy  are  almost  as  well 


12 


COMMERCIAL    RELATIONS    WITH    CANADA. 


kiH»wii  as  tin'  works  she  lius  ((Uistnu'tcd.  Tho  Hon.  A.  T.  Clalt,  the 
Caiiallisin  minister  of  tiiiaiKte,  in  a  late  sptMM'li,  oii  behfilf  of  tlie  govern- 
ment, said: 

We  liHve  ii(»  tmdo  ourselves  wliicli  would  requiro  enlarpemptit  of  the  caimls;  no  trade 
which  would  justify  us  in  oulargiuf;  them;  we  could  only  hf  repaid  for  such  iinprovementa 
by  obtaiiiiiip  the  Auiericau  States'  trade  and  making:  it  pay  tolls  or  otherwise  contribute  to 
our  revenue. 

H(»w  far  our  t5'<>vernnH'ut  will  be  willinj*'  to  surrender  its  trade  and 
revenues  as  a  tril>ute  to  this  policy  <»f  a  jjij^antie  British-Canadiau  rivalry, 
will  (h'pend  ui»on  the  rliara<;ter  of  American  statesmanship. 


CANADIA>i  TAltlFFS — TIIJOIK  IM'LIl^NCE  f)N  I'MTED  STATES  RAILllOADS, 

>!lIll»l»IN{r,  ETC.,  ETC. 

A  statement  of  the  clianjics  in  the  Canadian  taritf,  since  Jidy  (I,  18f>r>, 
as  retpiired  by  the  resolutions  of  the  House  of  Kei>reseutatives,  will  be 
found  in  tlie  apju'tidix  hereto,  (see  I>.) 

It  will  be  seen  that  r;ina<la,  with  a  view  to  exportation  and  the  <Ienmnds 
of  the  maritime  pro\  iiMcs,  now  admits  wlieat  and  tlour  free  of  duty.  She 
lias  uo  crop  so  cheaj*  and  piolitable,  for  various  manufacturing  ami  other 
jMU'poses,  lis  corn  bought  from  us.  It  is  a  domestic  ue<'essity  Avith  her 
to  i)urchas('  it,  iis  slic  cannot  [>roduce  it  so  cheaply  as  she  can  buy  it, 
and  any  duty  levied  by  lier  ui>on  wheat  an<l  corn,  our  two  staple  articles 
of  agriculture,  nnist  be  i)aid  by  Imm-  peoj)le.  Owing  to  the  g<'ological 
formation  and  tlie  p(  <itioii  of  tlu'  most  populous  and  rapidly-increasing 
]>ortiou  of  Cauiida,  she  will  always  be  comiK'lled  to  carry  her  coal  from 
distant  mines,  chii  Hy  tVcan  tlie  rnit<'d  States,  her  own  consumers  pay- 
ing whatever  duties  may  be  imijosed  on  it. 

A  chai'iicteristic  feature  of  the  Canadian  tariff's  is,  that  iilthough  the 
usual  rate  of  duty  levied  on  textile  fabrics  and  otlu'r  mamifactures  is 
15  per  cent.,  the  mntrrials  used  in  uiiinufacti. ring  are  car<'ftdly  exempt<'d 
from  taxation.  Many  articles  alresidy  in  part  manufactured  are  also 
iiiclmled  in  the  exemi)tions  for  this  jnirpose.  This  coiu-se  is  carried  to  the 
fullest  extent  in  reference  to  shipbuilding,  all  articles  used  either  in 
building  or  furnishing  a  ship  being  imported  free  of  sill  duty. 

A  similar  i)olicy  exists  as  to  railroad  iron  in  all  its  forms,  to  locomo- 
tives, and  engine  frnmes,  and  to  everything  used  in  the  constructing  of 
railways.  To  so  great  an  extent  are  tacilities  for  shipbuilding  carried 
out,  that  siM'h  a  vessel  as  would  cost  jibout  >«1(H)  a  ton  in  the  seaports  of 
the  United  States  can  be  made  for  little  more  than  half  that  sum  in  the 
p<U'ts  of  the  provinces,  estimating  in  the  currency  of  the  United  States. 
The  intliu'nce  of  this  great  advantage  in  faviu' of  provincial  shipping  and 
foreign  industry  over  those  of  our  own  c(uintry,  both  in  competiticm  for 
inland  commerce  on  the  lakes  and  rivers,  and  for  trade  carried  on 
between  the  two  countries  on  the  coast,  and  with  all  regions  beyond  the 
sea,  deserves  grave  attention ;  jtnd  the  concessions  made  in  the  sanu'  way 
to  provincial  lines  of  railroads,  also  c()mj>eting  with  our  own,  are  scarcely 
less  worthy  of  consideration.  The  coasting  trade  of  the  British  provinces 
has  nev<'r  been  conceded  to  the  vessels  of  the  United  States.  Foreign 
shi[>s  nught  go  from  one  colony  to  another,  but  even  this  linuted  prvvi- 
lege  is  now  taken  away  by  the  confederation  of  the  British  Novth 
Ameriean  provinces.  The  imperial  act  10  and  17  Victoria,  chapter  '.07, 
section  163,  is  as  follows: 

''No  goods  or  passengers  shall  be  carried  from  one  part  of  the  British 
possessions  in  Asia,  Africa  or  America,  to  any  other  part  of  the  same 
possessions,  ejcct^t  in  British  akips.^ 


I  alt,  the 
<]j<)Vt*rii- 


. ;  no  trade 
(Fovements 
iitribute  to 

■ade  and 
I  rivalry, 


[LllOADS, 


•  (),  isoo, 
s,  will  be 

demands 
ity.  She 
uid  other 
with  her 
u  buy  it, 
\v  artieles 
»«'()logieal 
ncreasinj^' 
coal  from 
mcrs  pay- 

iou.uh  the 
aetures  is 
exempted 
1  are  also 
ried  to  the 
either  iu 

to  loeomo- 
rueting  of 
lis;-  earried 
■;ea])orts  of 
Slim  in  the 
ed  States, 
ipjdug  and 
)etiti(m  for 
earried  on 
t)eyond  the 
'  same  way 
re  scarcely 
I  provinces 
i.  Foreign 
lited  privi- 
tish  Novth 
hapter  ;07, 

the  British 
►f  the  same 


I 


COMMERCIAL    RELATIONS    WITH    CANADA. 


13 


Some  yeara  ago,  in  my  report  to  Congress,  referring  to  the  suc(;essive 
and  successfnl  legislative  ertorts  of  Caiuula  to  divert  and  control  our 
commerce,  the  origin  of  this  evil  and  the  injury  to  our  industrial  interests 
were  ])ointed  out  as  follows: 

"In  the  profits  accruing  from  freight  between  the  two  countries,  the 
advantage,  since  tlie  treaty,  has  been  in  favor  i)f  British  shi[)piiig,  the 
value  of  exports  and  imports  ]»y  the  vesselsof  each  country  being  regarded 
as  the  test.  In  the  live  years  ending  June  .'»(),  isr)t,  the  value  of  <h>mestie 
exports  to  Canada  in  British  bottoms  was  61-,'V.)r>,.sl(;,  and  in  Anu'rican 
bottoms  $lG,5t).'>,.Sl(),  the  ju-eponderance  iu  our  favor  being  about  one- 
third;  whilst  in  the  five  years  since  the  treaty,  and  beginning  with  July  1, 
1854,  there  was  an  excess  against  us  of  nearly  one-half,  the  value  being 
$20,; j; JO, 720  in  American  vessels,  against  8'i'S'*42,«»riL'  in  vessels  of  British 
nationality.  No  marked  inequality  exists  iu  the  imi)orts  of  the  ITriited 
Stati  s  by  the  shipping  of  both  countries,  tlie  vahu'  <arried  by  them 
respectively,  $37,22;J,00r>  in  American,  and  8.'{<!,r)2S,<K5S  in  foreign  vessels. 

"In  this  competition  of  shipi>ing,  ^Vnierican  ship-owners  ran  a  race  iu 
fetters.  The  staple  nuuiufacture  of  Canada  has  long  been  tiiat  of  ship- 
building for  exi>ortation.  A  cljcap  and  abundant  snpply  of  labor  tor 
this  purpose  is  obtained  at  (Quebec  dining  the  long  winter  suspension  of 
navigation;  and  the  value  of  sliijts  built  there  tor  sale  in  foreign  mar- 
kets exceeds  by  many  times  that  of  all  other  maiuifactured  exports  of 
Canada.  This  branch  of  industry  is  encouraged  by  admitting  all  the 
materials  used  in  the  construction,  rigging,  or  equipnu'iit  of  ships, 
either  at  a  nominal  rate  of  duty  or  entirely  tree,  or  subject  to  a  return 
of  duty  to  the  ship-builder  when  satisfactory  proof  is  given  that  they 
have  been  used  for  this  j)urpose. "' 

The  evil  here  exhibited  has  now  grown  into  vast  proi)ortions,  and  is 
aggravated  by  the  burdens  of  our  own  legislation.  It  is  becoming  as 
disastrous  to  our  foreign  commerce  as  the  aimed  ships  of  (Ireat  Britain 
under  r<'bel  Hags  were  to  (mr  nu'rehant  marine  (hiring  thelat<'  rebellioii. 
Heretofore^  the  vship-owners  of  Hnglainl  and  other  connnercial  nations 
bouglit  our  vessels,  which  were  seen  «>n  every  sea,  and  sailed  undiT  the 
tlag  of  every  mitiou.  The  i»ractical  conseipuMices  of  our  h'gislatiou  are 
well  stated  in  the  following  "Address  of  the  Shii»  builders  and  Ship- 
owiuMs'  Association  of  .Maine:" 

"It  has  been  intimated,  an<l  the  proposition  has  been  seriously  enter- 
tained iu  high  and  intluential  i)hu'es,  to  repeal  our  navigation  laws  and 
admit  all  foreign-built  ships  to  American  registry!  Is  not  this  a  sutti- 
cient  inducenuMit  to  bestir  ourselves,  and  at  oimc  lay  before  Coiigicss  th(^ 
reasons  why  that  should  not  be  done  '  Sluuild  we  not  show  tlu'm  that 
this  will  be  a  great  initional  disaster,  and  more  ruinous  to  onc^  of  its 
members  than  the  hurricanes  and  eartlM|uakes  which  have  of  late  so 
severely  atllicted  other  regions.  The  Philistines,  with  a  view  to  keep 
the  Jews  in  perfect  subjection  to  them,  took  away  their  artisans,  so  that 
'there  was  no  smith  found  throughout  all  the  land  of  Israel.'  And  were 
they  not  wise?  What  more  perfect  device  could  be  employed  to  keep  a 
peoi)le  in  subjectionthan  to  take  fr(»ni  them  their  skilful  workmen  '!  And  is 
not  thisjust  what  this  ju-oposit  ion  a  mounts  to'  <  )ui'  shipwrights  would  be 
diawn  away  to  the  new  British  (h)minion,  and  all  their  skill  emi>loycd 
to  add  to  the  wealth  and  arrogance  of  that  power  which  has  intlicted 
ui)on  us  such  deadly  injury.  Is  the  Ameri<'an  nation  willing  to  aggran- 
<lize  that  power  to  the  ruin  of  itself,  and  present  to  the  Wiuhlthe  humili- 
ating s])ectacle  of  relying  on  other  nations  for  its  ships,  while  it  i>ossesses 
more  alunidant  means  for  their  construction  than  any  other  nation  what- 
ever, and  might,  but  for  its  own  unwise  legishition,  be  the  great  source 


14 


COMMERCIAL   RELATIONS   WITH   CANADA. 


of  supply  to  all  nations  ?  Wore  this  policy  cairied  ont,  tlio  iinniediato 
effect  would  be  the  eontinue<l  silence  of  our  shijj-yards,  the  transfer  of 
our  shipwrights  to  foreign  countries." 

What  is  true  of  ]Maine  can  he  well  said  by  the  people  of  evers'  frontier 
State  upon  our  0,0(M)  miles  of  river  and  lake  (roast,  especially  if  (,'ongress 
should  repeal  "our  navigation  laws  and  admit  foreign  vessels  to  Amer- 
i<*an  registry." 

Our  lake  marine  and  our  railways  now  have  to  compete  with  British- 
Canadian  carrying  systems,  constructed  at  half  the  cost  of  their  American 
rivals.  Admit  Canadian  vessels  to  r<'gistry  and  the  asserted  ownership 
will  be  nominal.  Their  admission  will  b<»  e(iuivalent  to  the  repeal  of  the 
navigati<ni  laws,  ])ermitting  foreign  vessels  to  coast  or  carry  goods  from 
one  port  in  the  United  States  to  another,  as  Canadian  railways  are 
allowed  to  transport  from  one  inland  }>ort  in  the  United  States  to  another, 
under  a  very  liberal  authority,  it  w(nd<l  then  be  said  everywhere  on 
our  inland  shores,  as  it  is  now  said  in  Maine,  that  "our  ship-yards  are 
idle,  and  grass  has  grown  where  formerly  was  the  busiest  tread  of  our 
workmen." 

Already,  estimated  by  tonnnge,  the  American  vessels  employed  on  the 
ocean  have  been  reduced  from  1S()1  to  1S<>7  more  tlian  one-half.  Few, 
perhaps,  ad(Mpmtely  a]>])reciate  the  value  of  our  inland  shijjping,  cr  an^ 
cognizant  of  the  fact  that  its  tonnage  now  exceeds,  or  is  considerably 
nunc  than  double  that  of  the  shipping  emj>loyed  in  foreign  trade.  If  the 
coasting  trade  slnmld  be  thrown  open  to  JJritish-Canaclian  rivalry,  the 
inland  shipping,  the  last  remaining  object  of  honorable  jn'ide  to  our 
navigation,  would  soon  be  driven  from  our  inland  seas,  through  the 
methods  which  have  jdready  reduced  our  ocean-going  vessels  to  less 
than  one  half  of  their  former  number,  and  continue  t(>  diminish  them.* 

Duly  by  adopting  the  principle  of  exempting  fnnn  duty,  or  allowing  a 
drawback  uiK)n  all  articles  used  in  the  construction  of  shijjs,  can  our 
fornu'r  naval  i>r(»si)erity  be  restored.  Tlie  same  principles  should  also 
be  extended  to  all  our  nu'ans  of  iidand  transit.  By  this  ccmrse  trans- 
portation of  our  great  staple  jjroducts  would  be  chea])ened,  and  our 
exjun-ts  be  enablcil  better  to  conii)et('  in  foreign  markets,  thus  aiding 
materially  in  turning  the  actual  balance  of  trade  in  our  favor. 

The  whole  modern  scheme  of  British-Canadian  internal  imiu'ovements, 
with  their  ingeniously-contrived  tariffs,  originated  in  a  perversion  of  the 
freedom  conceded  to  the  trade  a;.d  conunerce  between  the  two  countries, 
by  the  adoi)tion  of  the  reciprocity  treaty.  Without  such  coiu^essions 
British  capital  never  would  have  found  investment  in  the  immense  pub- 
lic works  of  Canada ;  nor  could  those  rival  carrying  systems  to-day  tind 
any  important  support,  except  upon  the  basis  of  our  bonded  system,  the 
warehousing  act  of  18r)4,  and  the  most  liberal  construction  of  the  act  of 

'The  distinguished  commercial  representative  from  the  city  of  New  York, in  his  speech, 
in  internati'  "onventiou  at  Portland,  said,  "That  the  inland  conunerce  of  a  country  is 
vastly  nior  taut  to  that  ctuiutry  tlian  its  foreign  coiunierce.     The  very  element  of  pros- 

perity in  f(  ,.,  commerce  is  domestic  conunerce.  (Applause.)  The  commerce  which  sails 
upon  your  lakes — Ontario,  Erie,  Superior,  Michijran — and  which  sails  upon  yttur  canals,  is  iu 
value  four  times  that  of  the  couniierce  which  is  borne  iu  ships  from  the  seaports  of  this  coun- 
try to  tlie  old  world  "     (Applause.) 

Mr.  Niuuno,  chief  of  the  tonnap^e  division  of  the  T^reasury  Department,  estimates  that,  the 
inland  conunerce  of  the  United  States  is  about  seven  timns  as  preat  as  the  commerce  l)etweea 
the  United  States  and  foreign  countries  (other  than  the  British  Possessions  of  Nv.rth  America) 
in  American  vessels ;  and  about  three  times  as  great  as  the  foreign  commerce  of  the  United 
States  iu  both  American  and  foreign  vessels. 

Me  also  states  that  during  the  live  years  ending  June  'W,  18^8,  only  H9  per  cent,  of  the 
aggregate  tonnage  entered  at  ports  of  the  United  States  from  foreign  countries  was  in  Ameri- 
cau  vessels;  the  remaiuiug  Gl  per  cent,  have  been  iu  foreign  vessels. 


iiiistVr  of 

'  frontior 

to  Ainei- 

i  British- 
American 
wncrslii]* 
•nl  of  t]u' 
»o(ls  from 
,vays  are 
anotlior, 
where  on 
,ar(ls  are 
iid  of  our 

ed  on  the 
ilf.  Few, 
ri^',  CY  are 
isi<lerably 
e.  If  the 
airy,  the 
Lie  to  our 
•ouj;h  the 
Is  to  less 
li  them.  * 
illowin^'  a 

,  can  our 
lould  also 
use  trans- 

aud  our 
ins  aidinjj;- 

ovements, 
qou  of  the 

countries, 
Ducessions 
lense  pub- 
to-day  tind 
ystem,  the 

the  act  of 

n  his  speech, 
■  a  country  is 
■mcnt  of  pros- 
•e  which  sails 
ir  canals,  is  in 
s  of  this  couu- 

natps  that,  the 
KM'cc  hetween 
.,rth  America) 
of  the  United 

•r  cent,  of  the 
was  in  Aineri- 


I 


COMMERCIAL    RELATIONS   WITH    CANADA. 


15 


i. 
i 


1700,  permitting  the  transit  of  foreij^n  and  domestic  j»'oods,  first  throujjh 
our  territory,  then  throu{»h  Canada,  and  afterwards  to  their  ultimate 
destination  in  this  country. 

The  privilege  Avas  acconled  to  Canadian  railways  to  carry  foreign  or 
American  merchandise  from  one  ])art  of  the  United  States  to  another, 
while  the  navigation  act  of  1H17  prohibited  the  <*arriage  of  the  sa^n» 
property  by  foreign  vessels  from  one  \n)rt  to  another  jtort  in  the  United 
States.  It  should  be  remembered  that  the  same  facilities  enjoyed  by 
Canadians  over  our  citizens  in  shipbuilding  also  inure  (|uite  as  fully  to 
their  advantage  in  the  construction,  operation,  and  repairs  of  railroa<ls, 
and  that  competition  between  lines  on  the  ditt'erent  sides  of  the  national 
boundary  is  not  merely  a  (piestion  of  distance,  alxmt  which  no  just  doubt 
can  be  raised,  but  also  of  cheap  construction  ;  and  to  aid  in  this  direction, 
the  Canadian  has  not  only  labor  ('omj)aratively  untaxed,  but  also  a  jtlenti- 
ful  snpply  of  nutaxed  timber  and  untaxed  iron  in  all  re(|uisite  forms. 

Further  investigation  of  this  branch  of  the  subje<*t  is  now  omitted,  as 
the  instructions  from  y(m  dated  March  L*7,  ISOS.  directing  me  to  incpiire 
into  the  workings  of  the  regnlations  of  the  Treasni-y  Department,  so  far 
as  they  relate  to  the  northern  fr()nti<*r,  are  more  fully  considered  in  a 
supplementary  document,  showing  the  sni»erior  advantages  thus  enjoyed 
by  the  Canadian  railways  in  comiJctition  with  our  own. 

ESTIMATE   OF   THE  ST.   LAWRENCE   ROUTE. 

As  an  exi)lanation  of  the  partial  character  of  the  treaty  in  not  ])i'ovi<l- 
ing  for  a  really  reciprocal  exchange  of  the  i>rodncts  of  labor,  it  is  often 
urged  that  the  admission  to  the  8t.  Lawrence  and  its  canals  coin])ensated 
for  the  deficiency.  If  with  the  advantages  conferred  upon  our  territory 
by  nature,  we  cannot  on  a  footing  of  just  (Mpiality  maintain  the  superiority 
of  our  transit  system,  we  ought  to  succumb;  but  an  im])artial  examina- 
tion discloses  the  fact  that  while  the  navigation  of  Lake  Michigan,  granted 
to  the  Canadians  by  the  treaty,  has  been  of  nnich  benefit  to  their  shijt- 
ping,  which  by  its  cheapness  drives  our  own  heavily  taxed  vessels  out  of 
the  tield,  those  have  been  greatly  mistaken  who  imagined  the  St.  Law- 
rence would  prove  a  ^reat  highway  from  the  west  to  the  ocean. 

COMPARISON  WITH  THE  AMERICAN   ROUTE — NATIONAL   CANAL   l»OLICY 

OF  NEW    YORK. 

As  the  navigation  of  this  river  was  on<^  of  the  sui)i)osed  equivalents 
granted  to  us  by  the  treaty,  its  real  value  bec(>nu's  an  important  subje<*t 
of  investigation.  Beyond  this  it  cannot  be  alleged  that  Canada  has  any 
equivalent  to  give  us  for  the  advantages  of  our  markets.  Hence  a  com- 
parison between  that  nmte  and  the  connecting  iine  bet we<'n  the  lakes 
and  the  ocean  through  our  own  country  is  an  essential  portion  of  the 
answer  to  the  inquiries  sul)n>itted  to  nu».  Nor  can  consideration  of  the 
terms  on  which  the  use  of  the  great  American  canal  is  «'njoyed  by  the 
j)ublic  be  i)roi)erly  omitted,  as  that  work  is  the  chief  competitor  with  the 
Canadian  lines,  and  we  dei)end  ujton  it  lor  the  maintenance  of  commer- 
cial suprenmcy  in  competition  with  Canada. 

No  other  work  of  eciual  magnitude  is  known  to  us,  excej)!  the  canal  of 
Languedoc,  by  which,  t\\o  centuries  ago,  Louis  the  X  I\",  known  in  history 
as  the  "Crand  Monarque,"  the  most  nuigniticent  sovereign  who  ever 
occupied  a  throne,  connected  the  Mediterranean  sea  with  the  Atlantic 
ocean.  The  i)olicy  adopted  by  the  enlightened  statesuicn  who  i)rojected 
both  these  great  works  was  alike.  That  Of  the  State  of  New  York  was 
so  far  to  improve  the  geograi)hical  advantages  of  our  jiositiou  as  to  pass 


16 


COMMERCIAL    RELATIONS   WITH   CANADA. 


through  our  territory  the  then  iiTi(leveh)i)ed  commeree  of  the  west,  and 
gradually  to  improve  these  facilities  to  sueh  a  degree  as  would  be  necessary 
to  meet  the  requirements  of  tue  growth.  Statesmen  did  not  at  first  fore- 
see the  future  importance  of  their  work  as  the  means  of  international 
communication  across  the  continent,  but  they  recognized  the  wisdom  of 
Louis  XIV  through  Colbert,  his  jn'ofound  and  sagacicnis  financial  Uiin- 
ister,  in  relation  to  the  tolls  on  i)ublic  canals  or  national  highways.  This 
formed  a  noble  precedent  for  the  policy  adoi)ted  by  those  wise  and  ven- 
erated benefactors  to  that  Stjite  and  the  nation  as  to  our  chief  thorough- 
fares. The  French  monarch  placed  the  to^Is  on  his  great  work  at  so  low 
a  rate  as  to  be  only  an  adequate  compensation  to  Reque,  the  engineer, 
for  keeping  it  in  a  good,  navigable  condition.  This  i)olicy  was  adopted 
not  so  much  with  a  desire  for  the  welfure  of  the  French  i)eople  as  from 
the  more  selfish  but  eidightened  motive  of  raising  the  greatest  amount 
of  revenue.  The  king  was  justified  by  the  results,  and  found  that  if 
considennl  solely  as  a  cpiestion  of  financial  policy  lor  his  exchequer,  it 
was  better  to  tax  wealth  only  when  it  had  accumulated,  and  not  to  arrest 
industry  in  the  work  of  ijroduction  or  in  the  cheap  and  profitable  ex- 
change of  conunodities. 

lu  every  Just  ai)portionment  of  taxation  the  increase  of  taxable  wealth 
decreases  th(i  burden  upon  tlu^  individual  and  the  masses.  All  eminent 
vriters  on  political  economy  confirm  the  belief  that  whether  the  freedom 
of  internal  commerce  and  industry  b(^  interrupted  by  impassable  moun- 
tains and  swamps,  or  by  oppressive  tolls  or  restrictions,  the  efiect  is 
equally  pernicious. 

When  she  entered  the  Union  the  State  of  ^New  York  relinquished  that 
part  of  her  revenue  whi(;h  was  derived  from  duties  or  taxes  on  foreign 
comnierc<?.  In  the  same  spirit  of  true  union  the  national  character  of  the 
canal  was  fully  recognized  from  the  beginning;  and  the  State,  declining 
to  tax  iidand  connnerce,  never  used  the  tolls  levied  upon  transit,  except 
to  repay  the  cost  of  nmking  the  canals  and  of  maintaining  them,  thus 
granting  facilities  to  the  transit  of  western  productions  at  a  time  when 
she  possessed  a  monopoly  of  the  inland  trade,  and  practically  recognizing 
the  light  of  free  way  through  her  territory,  as  a  light  of  nature  whicli 
could  not  justly  be  withheld  from  the  States  of  the  interior.  The  leaders 
of  public  opinion  in  the  State,  without  distinction  of  political  party,  now 
adln^re  to  tlu*  view  thus  early  adopted.  They  seek  by  the  development 
of  mutual  jind  material  interests  to  strengthen  the  bond  of  union  between 
the  States. 

Much  of  the  value  attributed  to  the  navigation  of  the  St.  Lawrence 
has  arisen  from  the  traditionary  estimates  placed  ui)on  it  when  no  other 
line  of  communication  by  water  connected  tlie  great  lakes  with  the  ocean. 
The  Hudson  penetrated  far  toward  the  inland  seas,  and  thus  dictated 
the  site  of  the  comnunx'ial  metropolis  of  the  Union.  But  beyond  Liie 
navigable  i)ortion  of  that  river  transit  was  difiicult,  and  its  cost  so  great 
as  to  be  prohibitory.  In  this  condition  of  aft'airs  the  minds  of  the  early 
settlers  in  the  then  "far  west"  naturally  turned  to  the  exit  attbrded  by 
the  inagnifi(,'ent  river  fed  from  the  great  lakes.  If  at  that  time  the  banks 
of  the  lower  St.  Lawrence  had  been  occupied  by  people  animated  by  the 
enterprise  and  foresight  of  commercial  life,  and  if  the  State  of  New  York 
had  not  then  numbered  among  her  citizens  men  of  a  comprehensive 
sagacity  never  surpassed,  and  combined  with  statesmanlike  intrepidity 
and  perseverance  no  less  remarkable,  the  St.  Lawrence  might  have 
become  the  great  tlKuoughfare  from  the  western  States  to  the  Old  World; 
our  national  trade  would  for  a  time  have  been  deflected  northwards,  far 
beyond  the  boundaries  of  the  Xew  England  States.    Montreal  would 


I 


COMMERCIAL    RELATIONS    WITH    CAN.VDA. 


17 


eat,  and 
ecessary 
li'st  fore- 
■natioiiul 
is«loiu  of 
rial  mill- 
>s.    This 
and  veii- 
lioroujuli- 
,it  so  low 
3iij?ineer, 
adopted 
i  as  from 
;  amount 
a  that  if 
lequer,  it 
to  arrest 
[table  ex- 

le  wealth 
1  eminent 
'  freedom 
)le  moun- 
efl'eet  is 

shed  that 
m  foreign 
ter  of  the 
declining 
it,  except 
lem,  thus 
ime  when 
cognizing 
ire  whicli 
le  leaders 
arty,  now 
elopment 
I  between 

Lawrence 
no  other 
the  ocean. 
s  dictated 
eyond  Lue 
t  so  great 
the  early 
forded  by 
the  banks 
ed  by  the 
N^ew  York 
irehensive 
ntrepidity 
ight  have 
Md  World; 
wards,  far 
eal  would 


have  taken  precedence  of  New  York.  The  wliole  commercial  i'ondition 
of  the  continent  might  have  been  temporarily  changed,  and  the  trade  and 
raanufactures  and  shipping  of  Great  Britain  would  have  been  fostered 
and  promoted  to  the  same  extent  as  the  jnogress  of  our  own  wouhl  have 
been  impeded.  At  the  time  when  the\  were  needed,  nu'U  worthy  of  the 
occasion  opportunely  arose  among  us.  They  apiueciated  the  momentous 
importance  of  having  the  commercial  metropolis  of  tlie  continent  within 
our  own  domain;  saw  the  signilicance  of  the  great  valley  through  the 
interior  of  the  State ;  understood  the  geographical  nature  of  the  conti- 
nent, and  the  finger  of  destiny  did  not  point  in  vain  at  the  only  portal  in 
the  Alleghany  mountains,  through  which  the  waters  of  the  lakes  and 
their  commerce  are  now  jnactically  conducted  to  the  mcmth  of  the  Hud- 
son, with  immense  i>rolit  to  th<'  nation  in  every  department  of  its  imiustry. 

The  undertaking  thus  initiated  had  so  much  intluence  upon  our  com- 
mercial relations  with  Canada  in  the  i)ast,  has  now,  and  must  hav<'  more 
in  the  future,  if  a  wise*  and  liberal  policy  is  adojited  by  the  general  gov- 
ernment, that  a  brief  historical  reference  to  the  views  of  its  lonnders, 
and  the  principles  in  which  theij"  successors  have  been  govermd,  faith- 
fully indicate  what  that  policy  should  be. 

In  1808,  when  discussions  as  to  the  Erie  canal  first  assumed  the  form 
of  definite  action  in  the  legislature  of  the  iState  of  New  York,  all  minor 
and  selfish  interests  were  i>atriotically  regarded  as  suhordinat<'  to  the 
national  welfare.  The  legislature  itself,  voluntarily  renouncing  the 
iulvantages  of  geograjdiical  ])osition,  except  in  i>arti('ii)ation  with  the 
other  States  of  the  Union,  confidently  exi)eeted  aid  from  the  nation  at 
Uu*ge,  and  i)assed  an  act  "causing  anacc-urate  survey  to  be  nuule  for  the 
most  eligible  and  direct  route  for  a  canal  t(^  open  a  communication  between 
the  tidewater  of  the  Hudson  river  iind  Lake  Erie,  to  the  end  that  ('<ni((re.sH 
may  Le  enabled  to  appropriate  tiueh  tiuins  as  niaii  he,  iieeesmri/for  the  aceom- 
plishment  of  that  great  national  objeet.''^ 

On  the  8th  of  A])ril,  1811,  a  further  act  was  i)assed.  The  comprehen- 
sive objects  expressed  in  it.s  preamble  were  b>  means  of  a  cjinal  navigsv- 
tion  between  the  great  lakes  and  the  Hudson  river,  to  "encourage  agri- 
eidture,  promote  commerce  and  numufactnres,  and  facilitate  a  free  and 
general  intercourse  between  the  different  parts  of  the  L'nited  States, 
tending  to  the  aggrandizement  and  i)ros]>erity  of  the  country,  and  to 
consolidate  and  strengthen  the  Union." 

Clinton,  Morris,  Fulton,  and  others,  were  appointed  commissie»nirs  lor 
the  consideration  of  all  matters  relating  to  the  proposed  iidand  naviga- 
tion. Th(^y  were  empowered  to  make  application  in  behalf  of  the  State 
to  the  CongTess  of  the  United  States,  or  lo  the  legislature  of  an\  State, 
to  co-operate  in  the  undertaking.  It  was  not  believed  that  a  work  80 
universal  in  its  benefits  would  be  left  to  the  isolated  eftbrts  of  a  single 
State. 

During  the  presidency  of  James  Madison  the  commissionejs  thus 
delegated  proceeded  to  Wa.shington  and  presented  the  a])plication  to 
Congress.  The  l*resident  made  their  ])roi)osals  the  siibje(!t  of  a  special 
message,  dated  December  3,  1811,  recommending  the  proposed  under- 
taking for  its  national  as  well  as  its  militaiy  ol))ects,  and  suggesting  the 
adoption  of  whatever  steps  might  be  necessary  to  insure  its  aecomjdish- 
ment.  At  the  request  of  Albert  Gallatin,  then  Se(;retary  of  the  Tr<'a.sury., 
Clinton,  Morris,  and  Fulton  drew  a  bill,  in  effect, a]>pro])riating  •^8,()00.0<.K) 
for  the  work,  and  embodying  the  memorable  words  :  "0/t  eonditiun  mrer- 
theless  that  no  tax,  toll, or  impost  shall  be  levied  upon  the  passage  of  boats 
through  the  said  canal,  other  than  such  as  may  be  needful  to  pay  the  annual 
ejo*)enses  of  superintending  and  leeping  it  in  repair.'"' 

"        2n 


18 


COMMERCIAL   RELATIONS    WITH   CANADA. 


•1 


The  bill,  together  with  the  special  message  of  the  President,  was  reforrod 
to  a  large  committee  and  was  favorably  received.  Gallatin,  the  Becro- 
tary  of  the  Treasury,  in  answer  to  a  letter  from  the  committee,  urged 
their  favorable  action  upon  consicU^rations  of  the  wisest  statesmanship 
and  ]Mirest  patriotism  ;  but  as  expectation,  verified  by  subsequent  events, 
was  held  that  a  rupture  with  Great  Britain  was  impending,  Oongre«8 
finally  dec^lined  to  make  the  approj)riation  at  that  time,  on  the  ground 
thfit  "  the  H'sonrces  of  the  crountry  might  be  required  to  support  a  war." 

The  (unnmissionjTs  marked  their  sense  of  the  refusal  to  grant  aid  to  a 
national  objcM^t  no  less  important  in  war  than  in  peace  by  saying,  in  the 
(conclusion  of  their  report  to  the  legislature: 

Theao  nioii  consolo  tlicmsrlvcs  with  a  liope  that  tho  envied  iState  of  New  York  will  con- 
tinuu  a  suppliant  fi>r  tho  tavor  and  a  depenucnt  upon  the  (reuerosity  of  the  Union,  instead 
of  makiu(;  a  munly  ami  diguitied  appeal  to  her  own  power.  It  remains  to  l)e  proved  whether 
they  judge  justly,  who  judpe  so  meanly  of  our  counsels.  1 

Congress  having  told  the  New  York  statesmen  to  wait  until  the  war 
was  over,  they  replied  that  they  would  not  wait;  that  "'delays  were 
always  the  refuge  of  weak  minds."  In  the  current  language  of  those 
days  they  called  ihv  work  "  the  grand  Erie  canal,"  appreciating  the 
sublimity  of  the  bcniefit^ent  changes  it  would  produce  in  oi)ening  out 
lor  immigration  and  the  use  of  mankind  an  areji  of  fertile  land  greater 
in  extent  than  the  narrow  edge  of  the  continent  occu])ied  by  the  leading 
nations  of  the  Old  Worhl,  more  clearly  in  the  confidence  of  their  well- 
Omnded  hoix's  than  W(^  <lo  now  who  look  at  their  realization  as  a  fact 
accomplished  long  ago. 

After  the  jjostponeinent  of  aid  by  ('ongress,  applications  wtue  made 
to  the  legislatures  of  difterent  States ;  stneral  of  them  returned  favor 
able  answers,  but  the  war  with  Great  IJritain  having  begun,  little  pro 
gress  was  made. 

On  the  loth  of  November,  ISIO,  DeWitt  Clinton,  as  president  of  a 

board  of  commissioners,  appointed  the  previous  year,  renewed  the  appli 

ration  to  the  government  of  the  United  States,  and  on  behalf  of  this 

State  he  rei)resen ted,  again  l>ore  significant  testimony  to  the  lofty  purity 

of  her  motives  in  seeking  her  own  interest   only  by  promoting  tlie 

national  welfare.     He  said: 

The  State  of  New  York  is  not  unaware  of  her  interests,  nor  disinclined  to  prosecute  them, 
L;:t  when  those  of  the  general  government  are  concerned  and  seem  to  be  paramount,  sho 
deems  it  her  duty  to  ask  for  their  assistance. 

Finding  that  all  her  efibrts  to  secure  aid  from  other  States  or  the 
general  government  were  unavailing,  the  State  of  New  York  alone  and 
with  the  slender  resources  of  those  days  resolved  to  commence  the 
gigantic  undertaking.  Even  then  she  persevered  in  rejecting  consider- 
ations merely  selfish.  Her  commissioners  repudiated  the  idea  of  a 
"transit  duty  "to  be  levied  for  the  advantage  of  the  State,  and  said  this 
would  be  "the  better  course  if  the  State  stood  alone,  but  fortunately  for 
the  i)eace  of  the  Union  this  is  not  the  case.  We  are  connected  by  a 
l)ond  which,  if  the  prayers  of  good  men  are  favorably  heard,  will  be 
indissoluble." 

The  iw.t  inaugurating  the  construction  of  navigable  comnumicatious 
between  the  great  western  and  northern  lakes  and  the  Atlantic  ocean 
was  passed  by  the  State,  April  15, 1817,  and  was  based  upon  an  impor- 
tant memorial  presented  to  the  legislature  by  the  leading  merchants 
and  men  of  iniluence  in  the  city  of  New  York.    It  stated  that — 

Whereas  navigable  communications  between  Lakes  Erie  and  Champlain  and  the  Atlantic 
ocean,  by  means  of  canals  connecting  with  the  Hudson  river,  will  promote  agriculture  and 
manufactures,  mitigate  the  calamities  of  war,  and  enhance  the  blessings  of  pe&ce,  consolidate 
the  Union,  and  advance  the  prosperity  and  elevate  the  character  of  the  United  States,  it  is 


COMMERCIAL    RELATIONS    WITH    CANADA 


1!) 


B  rofcrrod 
ho  Secro- 
Rc,  urged 
smaiiship 
rit  events, 
Ooiigniss 
e  ground 
rt  ii  war.'* 
t  aid  to  a 
ig,  in  the 

•k  will  con- 
Ion,  inBtead 
veil  whether 
t 

i  the  war 
ayn  were 
of  those 
iting  the 
ining  out 
(1  greater 
e  k'ading 
heir  well- 
as  a  fact 

iue  made 

led  favor 

ittle  pro- 

ilent  of  i\ 

the  appli 

f  of  this 

tv  purity 

>ting  the 

ecute  thoin, 
imouiit,  sho 

»s  or  the 
ilone  and 
ence  the 
eonsider- 
dea  of  a 
said  this 
ately  for 
ted  by  a 
,  will  be 

ideations 
;ie  ocean 
n  inipor- 
erchants 

he  Atlantic 
;ultui-e  and 
consolidate 
tates,  it  i.s 


.1 

1 


I 


the  incumbent  duty  of  the  people  of  this  State  to  avail  themselveH  of  the  means  which  the 
Almiehty  has  placed  in  their  hands  for  the  promotion  of  such  sif^nal,  extensive,  and  iaHtiiip; 
henents  to  the  human  race. 

Having  originally  taken  upon  herself  whatever  there  might  have? 
been  of  risk  in  making  at  her  own  unaided  cost  a  channtil  of  cheap  com 
munication  by  water  between  the  citizens  of  tln^  eastern  iiiid  western 
suites,  and  between  those  of  the  west  and  the  gieat  highway  of  tin; 
world,  the  Stiite  of  New  York,  from  ])atriotic  motives,  continues  to  hv 
the  great  regulator  of  the  c-ost  of  transit  between  tlie  east  and  wcst^ 
protecting  no  small  proijortion  of  the  people  of  the  Union  against  those 
extortionate  charges  which  might  have  been  hivicd  if  the  canal,  with  its 
luitural  monoi>oly  of  position,  had  falUMi  into  the  hands  of  si)eculating 
individuals  or  companies.  It  is  computed  that  during  the  six  months 
of  navigation  the  canal  alone  carries  as  large  a  tonnage  of  freight  as  the 
live  chief  trunk  railroads  from  west  to  east  during  the  whole  year,  at 
half  the  cost  to  the  public,  being  a  saving  annually,  in  transjuntation  by 
wat<^r,  to  the  great  consuming  and  producing  classes  of  the  northwest- 
ern and  eastern  Stat<'S  of  $30^580,000. 

The  average  cost  from  Chicago  to  New  York  via  tlie  lakes,  the  lOrie 
canal,  and  tlu^  llmlson  river,  including  canal  tolls  and  carriers"  in-ofits, 
embracing  a  period  of  10  years,  is  $7  00^.  The  cost  of  transportation 
on  the  Central  railway,  as  given  in  annual  reports,  taking  tlie  avel•ag«^ 
for  six  years,  is  one  cent  four  mills  and  nine-tenths  of  a  mill  per  mile, 
not  including  carriers'  proiits.  This  average  applied  to  the  distance  from 
$C  05.1  more  i)er  ton  than  the  average  cost  for  a  period  of  10  y«'ars  via 
Chicago  to  New  York  by  rail,  98S  miles,  makes  $14  .'Jl.O  per  ton,  or 
the  lakes,  the  Erie  canal,  and  the  Hudson  river,  including  {State  tolls 
and  proiits  of  carriers.  The  through  freight  moved  4'astward  by  the  live 
trunk  lines  and  the  Erie  canal  is  about,  in  round  numbers,  5,500,000 
tons,  which,  if  multiplied  by  $0  05.1,  the  diflerence  before  mentioned, 
would  make  a  ditl'erence  between  rail  and  water  transportation  of  all 
carried  by  either  method  of  $30,580,500,  and  with  the  i)rolits  of  the 
railway  comi)anies  added  to  the  actual  cost  would  augment  this  amonut 
largely. 

IlKHIT   OF   WAY   THE   IllGriT   OF   TIIi:   MILLION. 

There  is  no  withdrawal  from  the  original  doctrine  of  the  State  that 
the  canal  should  bt^  considered  as  a  trust  from  which  the  State  shoidd 
receive  back  simply  what  it  advanced  for  construction  ami  maintenance, 
and  employ  the  sur]>lus  for  the  improvement  of  the  work  and  (jheapen- 
ing  the  service  it  renders  tt)  the  public.  Such  were  the  views  held  at  the 
constitutional  convention  of  the  State  in  1807,*  when  the  ])rinciples 
enunciated  in  1840  by  its  master  spirit,  Michael  llofll'raan,  Avere  quoted, 
reiterated, and  a])proved  by  the  leading  men  on  all  sides.    He  said: 

The  right  of  tray  is  the  right  of  the  million.  The  sovereign  holds  it  in  trust,  and  can  exer- 
cise it  only  for  their  benefit,  and  has  no  right  to  make  a  revenue  out  of  it.  Such  a  course 
must  engender  the  worst  oppression  and  the  worst  corruptions,  and  soon  realize  the  worst 
vice*  of  the  worst  governments — taxation  on  all  we  consume,  which  will  allow  nothing  to 
go  to  or  from  the  markets  without  tribute  to  the  State. 

NATIONAL  CHARACTER  OP  THE   CANAL. 

Tlie  truly  national  character  of  the  work  and  of  its  value  is  shown  by 
the  fact  that  the  commerce  passed  over  it  and  belonging  to  the  people  of 

*  Evarts,  Tilden,  Church,  Corning,  Opdyke,  Dr.  Dwight,  professor  of  international  law,  in 
Columbia  College,  Brooks,  Murphy,  Eustiss,  Cas^idy,  Clark  of  Rochester,  and  others,  mem- 
bers of  the  New  York  constitutional  convention  in  1867,  lepudiated  the  idea  of  taxing  com- 
merce upon  the  canals,  maintaining  that  only  tolls  should  be  levied  to  pay  for  construct'on 
and  repairs. 


20 


COMMKUOIAL    RELATIONS    WITH    CANADA. 


it«  own  Htatc  is  only  t)n(>-ninth  of  the  {ijjfj?rc;;ato,  tin*  n'msiimlcr  coining 
from  the  wivstiTii  aiul  iM'iitrsil  States,  or  (Jansul;i.    Tlio  Stjitcof  Now  York 
tlot'H  not  furnish  as  largo  an  ainouiit  of  tonnage  for  the  canal  as  is  Hup 
plied  by  citlior  Michijjan,  Illinois,  or  Wisconsin,  Hin*fly.     No  less  eonclu 
sive  is  the  testimony  of  half  si  century  as  to  its  nneqnivocal  sncc^esw, 
present  value,  and  certainty  of  the  continue*!  incn'ase  of  its  trade. 

The  nja}j:nitude  of  the  juesent  annual  jmxlurtions  of  the  States  l;order 
in^;  on  the  lak<'s  is  not  entirely  unknown  to  th<'  public;  but  few  know  how 
fertile  is  the  soil  and  jjcnial  the.<'liniate  of  the  vast  areas  to  the  north- 
west of  Jjake  SujUTior,  soon  to  l)e('ome  settled  jind  increase  that  yet 
undeveloped  commerce  of  the  lakes  which  will  pass  throuji^h  our  own 
tenitory,  enrich  our  merchants,  employ  our  own  people,  and  aid  in 
diminishing;  our  national  burdens,  if  we  are  true  to  our  own  Just  interests 
and  are  faitliful  stewards  of  the  ])ublic  trust  committed  to  our  (charge. 

Already  the  averajje  unnuul  inconie  of  tin*  canal,  after  (hMlucting  [ill 
exj)enses,  is  $.'>,(MM),()()0,  carefully  apjdied  to  the  extiiu'tion  of  the  debt 
incurred  by  the  construction.  At  the  ])resent  rate  of  income,  not  com 
putin;»  its  i)rospective  increase,  the  debt  will  b(»  wholly  dischurjjfed  in 
eijjht  veais.  Subj(»ct  to  the  existinji"  lien  on  it  the  canal  "could  now  b<^ 
readily  sold  for  at  hnist  .$r)0,(M)(),0()(). 

It  has  been  seen  that  in  the  rivalry  betw4M'n  the  carryin;;  systems  of 
the  8t.  Lawrence  river  aiul  the  Erie  canal,  or  Hudson  river,  the  rouU^ 
through  our  own  country  is  incomparably  the  most  successful  competitor, 
aftbnlin*;,  even  to  a  larjjfe  ])roportion  of  the  ('anadians  themselves,  the 
best  means  of  comnnniicatinj;"  with  Atlanti<*  ports  and  the  world  at  large. 
Yet  it  is  said  that  with  certain  enlarj^ements  of  her  canals  the  St.  l^aw- 
rence  would  b(»ar  away  the  i)alm  of  victory,  and  British-C'anadian  capi- 
talists are  urged  to  invest  in  the  doubtfid  experiment.  A  sum  small  in 
comparison  with  the  present  cost  of  the  Erie  canal,  expended  in  judicious 
imi)rovements  ni)()n  it  so  as  to  permit  the  passage  of  boats  of  a  greater 
size,  would  reduce  by  one-half,  or  50  per  cent.,  the  i)resent  cost  of  trans- 
portation on  it.  A  similar  saving  has  been  actually  etfected  by  similar 
means  already  ai)i)lied,  and  competent  engineers  and  statisticians  bear 
testimony  to  the  repetition  of  ecpml  results  from  further  improvement. 


I 


PROPOSED  IMPROVKMF.NT  OF  THE  CANAL  AND   ITS  NATIONAL  RESULTS 

« 

.  Under  the  liberal  system  hitherto  adopted  by  the  State  of  New  York, 
this  reduction  in  the  cost  of  freight  wouhl  inure  to  the  benefit  of  the 
western  farnuT  by  pra<^tically  diminishing  distance  between  him  and  the 
consunuT  in  the  cities  and  manufacturing  districts  in  the  east,  and  our 
customers  throughout  the  world.  The  St.ate,  after  all  her  expenditures, 
is  yet  ojdy  the  friendly  channel  or  medium  between  the  producer  and  con- 
sumer, and  is  interested  for  her  own  citizens  only  so  far  as  they  constitute 
a  part  of  the  whole  people  of  the  Union. 

In  a  i)revious  rej)ort  the  attention  of  t'ongress  was  called  towards 
securing  the  realization  of  the  proposal  of  the  State  of  New  York  (stiU 
embodied  in  a  law)  to  adapt  the  Erie  and  Oswego  canals  of  that  State 
to  the  military  uses  of  the  national  government.  To  attain  this  object 
only  a  small  sum  is  necessary  compared  with  that  required  to  overcome 
the  natural  obstacle  of  Niagara  Falls.  The  desired  result  could  be 
attained  in  one-third  the  time  and  at  one-third  of  the  cost  necessary  for 
the  completion  of  any  practical  work  that  could  carry  the  line  of  trade 
round  the  falls.  Nor  would  the  adaptation  of  the  New  York  canals  to 
the  uses  proposed  be  only  an  experiment,  costly  in  expenditure  of  time 
and  money. 


4 


1^ 


COMMERCIAL   RELATIONS   WITH   CANADA. 


21 


coming 
ow  York 

)  <'.on('.]u- 

SIICCOHH, 

i  lioidor 
low  how 
«'  north - 
thiit  yet 
Hir  own 
I  aid  in 
ntor(>8tfl 
Inirgo. 
ntin^  all 
tho  debt 
lot  com 
lUfjod  in 
now  1)0 

stems  of 
lie  routi^ 
ipctitor, 
vos,  the 
it  large, 
^t.  Ijaw- 
m  capi- 
unall  in 
ulicioiis 
ffi'cator 
>f  trans- 
similar 
,ns  bear 
v^ement. 

3SULTS 

v^  York, 
of  the 
and  the 
md  our 
iitures, 
nd  con- 
istitute 

owardH 
'k  (stiJl 
t  State 
object 
ercome 
iild  be 
ary  for 
'  trade 
uals  to 
f  time 


I 


ImprosNod  with  tiiese  considerations,  and  the  fact  that  ai)pli<'ations 
are  now  entertained  by  (!ony:resH  for  the  j;rant  ol'  hirjje  national  aid  to 
open  new  commereial  elnunu'ls  and  im|)rove  old  ones  from  the  west  to 
the  seaboard,  it  is  respeetfully  submitted,  us  a  measure  of  sound  politieal 
economy,  rejL^ardinp:  the  national  wealth  and  the  revenue  to  be  <lerived 
from  it,  that  such  aid  as  may  be  necessary  for  tlie  Judicious  iiu]>roveinent 
of  the  Krie  (tanal  to  its  maximum  eapaeity  for  trarjspdrtntion,  so  as  to 
enabh^  it  to  carry  ex])editi(msly  and  at  tlu*  lowest  practi<'abhM*ost  such 
freij,dit  as  nuiy  be  broujjht  to  it,  shall  be  ^'ranted  by  th(^  general  govern 
ment  of  tlu*  IJnited  States,  provide<l  the  Stat<»of  New  Y^ork  shall,  at  the 
same  time,  plcdjje  its  faith  by  a  simph'  hnv,  embodyinjj:  in  sulistani'e  tin- 
traditionary  ])olicy  <»xpressed  by  dlinton,  Morris,  and  Fulton,  that  'MU'V 
the  cost  of  theeanal  has  been  ])aid  no  tax,  toll,  or  im])()st  sliall  b<>  levied 
npon  the  pjissajjfc  of  boats  throuy:h  the  said  eanal  other  than  shall  bo 
needful  to  i)ay  tlu^  annual  expense  of  superiuteiidin;,^  and  keepiu);  it  in 
repair;  thus  romph'tiujur  a  free  national  (•hannel  of  inland  navi;ration 
extending  1,000  miles  to  tlu^  centre  of  the  continent,  and  luactieally  <!ar 
rj'ingout  the  most  important  teatun'ol'  the  ( 'onstitution,  l)y  establishing 
free  tra<le  and  tm?  commerc(^  bctwcjui  the  State's. 

In  the  presence  of  these  historical  reminiscences  and  commercial  and 
financial  considerations,  it  may  now  be  well  asked  if  the  time  has  not 
arrived  wlien  the  peneral  j^overnment  should  not  adopt  the  policy  advo 
cated  by  Madison,  Gallatin,  (Hinton,  Morris,  and  Fulton,  by  extendinj^ 
its  stronff  arm  and  takinjj  "the  vexed  (piestion"  of  the  imiuovement  of 
this  ifreat  national  channel-way  of  internal  <M)mnierc(^  to  its  maximum 
capacity  from  the  arena  of  narrow,  contlictinj,'  political  and  local  inter 
ests,  and  relieve  the  friends  of  a  comprehensive  and  j>ro;;ressive  policy 
in  rej^ard  to  it  from  those  long  and  tryinjjf  struj^gh's  and  delays  whicli 
have  always  i)receded  important  improvements.  Oan  national  aid  bo 
extended  to  any  o1)ject  throus:h  whi(^h  tlu^  national  ju-osperity  and  rev- 
enue could  be  so  lar^^t^ly  increased  1  Should  this  i)olicy  be  adopted,  t\w 
trade  and  comment'  of  the  border  nation  would  in  the  future,  as  in  th(^ 
past,  contribuUi  to  our  public  welfare,  yieldin*^  to  the  suprema(!y  of  our 
natiomil  advantages,  and  the  dominion  of  Canada  would  desist  from  any 
further  unprotitable  rivalry. 

Had  the  Canadians  been  willing  to  a<'c<»j)t  the  liberal  privileges 
extended  to  them  in  the  fraternal  spirit  they  were  granted,  yielding  to 
the  destiny  unalterably  tixed  by  geogra})hy,  climate,  and  the  b«)unda 
ries  established  under  the  Ashburton  treaty,  and  not  vainly  attempted 
to  exercise  a  commercial  domini(m  (worthy  of  imi)erial  anibition)  over 
our  western  trade,  and  its  transit  lines  to  the  Atlantic,  they  would 
to-day  have  been  enjoying  commercial  free(h)m,  and  free  access  to  our 
markets  for  the  sale  of  their  products,  and  would  have  been  permitted 
to  retain  the  advantages  which  the  reci])ro(!ity  treaty  gave  them  by 
placing  them  on  a  commercial  ecpiality  with  the  States  of  this  Union, 
without  being  subject  to  any  of  its  burdcjis. 

Neither  the  trade  nor  the  public  works  of  any  other  count ly  shouhl 
be  looked  upim  in  an  unfriendly  s])irit.  It  is  ignoble  to  hold  other 
nations  back,  or  obstruct  the  chariot  wheels  of  ])rogress  in  any  i)art  of 
the  world.  We  should  rather  seek  })re-eminence  by  developing  those 
national  advantages  in  our  own  country  which,  while  they  promote  our 
own  prosperity,  will  also  benefit  others.  The  expressions  of  Mr.  Burlin- 
game  when  at  the  head  of  the  Chinese  embassy  (he  said,  "  We  come 
here  to  seek  the  iinitication  of  the  human  family,  and  we  trust  that  all 
will  meet  us  in  like  spirit  in  this  republic")  *  embody  the  policy  we  should 

*  Mr.  Burlingame's  reply  to  Mr.  Hatch's  address  to  the  Chinese  Embassy,  at  Niagara  Falls. 


20 
22 


/"«  r«  •  •  •  *  ■ 


COMMERCIAL    HELATIONH    WITH    CANADA. 


«v<;ryw!ien^  crulcavor  to  r,arry  into  rfliiict.  Tlic-  oflicial  onnnciation  of 
UiiH  (I(N'irino  on  Ix^lialt'  of  tli()  ki*<'«>'^'  oriental  (tm)»in^  was  an  cvttnt  of 
H<;ar<'.('ly  1(>hs  iini)ortaiuM',  than  the  departuK^  of  (JoIuuiIhih  on  his  voya|;c; 
of  (liHcovcry  to  this  continent.  Certainly  th(;  ('anadians  woiv  inei  in 
thiH  Hpii'it  when  tlic  treaty  was  negotiated.  If  inst4^a(l  of  this  fri<'n<Uy 
poliey  the  IJnit4Ml  States  ha<l  adopted  towards  them  the  illilMU'al  eonrs<>. 
ur^ed  hy  th<'  (^anadian  minister  npon  his  own  country,  when  he  said, 
*'  W(5  must  ke«'|Mnir  (»wn  trade  within  and  ov<'r  its  own  (rhannels  asmu(;h 
as  possible,"'  we,  slionld  nev«*r  hav<^  <'(»ne<'ded  to  iM'r  free  aci-ess  to  our 
markets  for  all  she  has  to  sell,  and  left  open  for  taxation  nearly  all  we 
sell  io  her  for  her  own  use  andeonsnmption,  or  p(>rmitted  the  free  retnrn 
of  ]»r()dnets  or  freight  to  this  si(h>  without  paym<'nt  of  duty,  after  liav 
in;;  passed  over  <!ana<lian  railroads. 

V\w  first  formidable  opposition,  stimulated  by  the  popular  s<Mitiment. 
against  the  tr<'aty,  arose  from  the  fre(pient  and  short -sitrht<'d  renun- 
ciation, in  avowal  ami  prartiee,  of  the  |>rineiple  of  reeijjroeity  by  the 
(*amidiaus.  Not  only  did  the  Canadian  minister  commit  this  error  in 
his  public  utteraiu'cs,  but,  as  has  been  already  stat«'d,  he  endeav(uvd  to 
couiit<'ract  the  natural  (itfccts  of  the  treaty  by  laws  discriminating 
against  us. 

Ili^lu-r  duties  were  ])lac<'d  upon  our  manufactures.  Laws  were  ])assed 
to  iM'evcnt  our  men^hants  from  selling  to  t!anadians  merehandiKe 
im]K>rt<'d  from  other  countries,  and  to  force  busiiu'ss  to  the  (/amulian 
railroads  and  canals;  aiul  legislative  enactuu'uts  were  passed,  interfering 
with  the  natural  course  of  trade,  and  depriving  our  peoi)le  of  its  just 
benefits.  The  grievauc<^  was  by  no  means  theoretical.  Under  the  tariirs 
and  regulations  jidopted  by  Canada  tlu'  trade  of  our  iidand  <'ities  with 
her  was  <h'stroyt'd,  manufa<'turers  brok(^  up  their  establishm<'nts  and 
removed  to  tin*  ])roviiice,and  the  trade  of  oui*  Atlantic  citi«'s  with  Canada 
in  imported  goods  was  transferre<l  to  Montreal. 

The  belief,  originating  in  these  rc^asons  and  hehl  by  ('ongress,  that 
the  sj)irit  and  substance  of  the  treaty  of  Washington  had  been  <lisre- 
garded  by  the  legislators  of  (Canada,  led  to  its  termination  and  the  refu- 
Ral  to  authorizes  any  negotiations  for  its  renciwal.  Nor  have  the  Cana- 
dians, in  proposals  submitted  to  Congress  in  lS(i3,  or  at  any  other  time 
ever  oftered  to  make  such  additions  to  the  free  list  as  would  fairly  cii 
out  a  system  of  Just  exchange. 


ily  cariy 


CONCLUSIONS. 

A  treaty,  if  thoroughly  reeiinocal.  would  include  all  the  products  of 
labor  on  both  sides,  or  at  lesist  i>rovide  for  a  fair  and  equal  exchange  of 
them.  The  party  selling  the  productions  of  agi'icultur(5  and  the  forest 
should  nsmove  all  laws  ju-eventing  the  sale  of  nianuftictures  on  the  part 
of  the  other,  and  under  the  present  condition  of  our  revenue  laws  com- 
petitiim  between  tlui  people  of  the  United  States  and  Canada  can  only 
be  on  e<pial  terms  when  duties  equal  to  those  directly  or  indirectly 
exacted  by  our  government  from  our  own  citizens  are  levied  on  importa- 
tions the  product  of  Canada.  The  same  principle  evidently  applies  to 
the  competition  of  the  cheaply  built  and  untaxed  railroads  of  Canada 
with  those  of  our  own  comitry,  which,  through  the  tariffs  and  various 
methods  of  internal  taxation,  contribute  largely  to  the  revenue  of  the 
United  States. 

In  the  clear  light  of  past  experience  our  commercial  advantiiges  wouW 
be  fairly  estimated  in  fixing  the  basis  for  renewal  of  reciprocal  trade. 
Nor  could  the  well  known  fact  be  overlooked,  that  since  the  termination 


COMMKKCIAL   RKLATI0N8   WITH   CANADA. 


23 


i'iation  of 
I  v\v,ut  of 
lis  voyuRC 
ro  iiM'.t  in 
s  frU^mUy 
(ral  cours*'. 
>n  he-  Kiiid, 
Is  as  much 
•CSS  {{}  our 
inly  all  wt; 

AiWY  hav 

sontiiiuMit. 
UmI  rcmiii 
•itv  by  the 
liis  error  in 
U'avoivd  t<» 
•liniinatinj^ 

kvcrc  ])assed 
icichandisc 
(>  Oaniulian 
,  intciicring 
5  of  its  just 
»!•  the  taiitfs 
I  cities  with 
iments  and 
vith  (Canada 

nj^ress,  that 
been  disre- 
nd  the  refu- 
e  the  Cana- 
other  time, 
fairly  carry 


products  of 
exchange  of 
id  the  forest 
1  on  the  part 
ae  laws  com- 
iida  can  only 
3r  indirectly 
Ion  importa- 
ly  applies  to 
Is  of  Canada 

and  various 
;venue  of  the 

utages  would 
iprocal  trade. 
e  termination 


4 


of  the  n^ciprocity  treaty  foreign  immigration  to  Catiada  no  longer  stops 
there,  but  passes  on  to  th«'  HtJites.  If  the  value  of  the  fori'ign  labor 
immigrati<Hi  is  <M>rrectly  estimated  by  the  (Jommissioiier  of  liit>ernal 
Uevfuiue,  in  his  re<'cnt  able  repcyrt,  (and  who  doubts  it,  wlieii  our  vast 
undevelo|)ed  res(»ur<H's,  with  our  opportunities  for  their  development,  are 
considered f)  then^  are  now  millions  of  dollars  added  ainiually  to  oiir 
mitional  wealth  from  this  source  of  productive  industry.  The  very  large 
amount  of  revenue,  too,  now  not  less  than  st^ven  millions  of  dollars, 
annually  derived  from  Canadian  proiiuctions  without  diminishing  their 
importations,  deserves  and  must  rceive  grave  thought  in  any  future 
negotiation  between  the  I'nited  Stat<'s  and  the  new  dominion.  So,  also, 
will  the  advani'cd  condition  of  nmny  manufactures  in  Canada,  originat 
ing  in  the  unfair  advantage  taken  of  die  freedom  accoided  to  her  by 
the  treaty. 

Instructed  by  the  lessons  of  the  past,  and  a  knowlrdge  of  our  preseni 
financial  recpiircmcnts,  a  treaty  so  much  desired  by  Canada  iiiiuht,  ru) 
doubt,  be  made  so  «'omprchensive  in  all  its  details  that  neithei-  party 
could  lie  mistaken  as  to  its  resiUts,  or  Im;  capable  of  evading  its  spirit  or 
substance;  or  our  future  intercoursj*  might  be  left  where  it  now  is  to 
reciprocal  or  iii<lependent  legislation,  to  be  changed  trom  time  to  time  as 
the  varying  interests  of  our  donu'stic  or  international  relations  or  the 
violation  of  reciprocal  obligation  might  leiiuin-. 

isiiAKL  r.  HATCH. 

Hon.  Hugh  McCrLLocir, 

tSt'cmtary  of  ilw  Trcnunr!/. 


AIM»KNI)IX  A. 

Th(»  following  are  the  extracts  from  statements  made  by  the  collectors 
at  the  leading  olVices  where  tin'  revenues  are  now  collected  on  the  north 
crn  frontier : 

''OciDKNSni'IKJ,  Auffust  :\j  ISOH. 

"The  supply  and  demand  in  the  United  Stat<'S  is  so  much  larger  thaji 
ui  Canada,  that  importations  from  there  atteet  our  markets  but  litth'. 

The  following  articles  are  not,  in  my  opinion,  im|)orted  IVoni  Canada, 
in  suni(;ient<piantities  to  affec't  our  markets:  Uutter,  cheese, eggs,  wheat, 
rye,  oats,  barley,  an<l  becfcatth'.  Our  imjjortations  of  these  articles  are 
so  small,  compai'cd  with  our  productions  and  witli  ourexjxMtations,  thai 
we  can  be  atTect<'d  but  litth'  by  the  supi>ly  tVom  Canada." 

'•rLATT.snriid,  'hoiv  s,  jsos. 

•"  I  submit  the  following  stat<'iiient  as  an  illustration  apj)licaMe  very 
generally  to  all  importations  made  into  this  district.  This  |»ast  spring 
large  (piantities  of  potatoes  have  bci'ii  inijtorted  into  this  district,  and 
the  <luty  of  25  cents  jx-r  bushel,  gold,  paid  l)y  the  Caniidian  seller  or 
exi)orter,  as  the  sale  has  generally  been  i»ertccte(l  on  the  (iiited  States 
side  of  the  boundary  line,  <luties  ])aid.  The  American  speculator  buying 
at  such  prices  as  to  successfully  compet<^  with  sellers  in  the  Jioston 
market,  <ioes  the  consunun'  of  the  imported  potatoes  pay  the  duty  to  the 
United  States  when  he  ])urchas(\s  the  potatoes  at  the  samc^  price  that 
another  pays  for  the  American  ])roduct?  If  tlu^Caiunlian  cannot  exi)ort 
his  goods  at  a  profit,  or  the  specaUator  cannot  buy  in  the  foreign  market 
and  i>ay  the  tluty  at  a  price  that  he  can  sell  at  in  the  American  market 
at  a  profit,  he  does  not  purchase.  The  same  can  be  said  in  relation  to 
grain,  and  in  fact  of  nearly  all  importations  into  this  district." 


24 


COMMERCIAL    RELATIONS    WITH    CANADA. 


*'  Cleveland,  October  20, 1808. 
"Tlie  ciiief  articlcH  of  importation  at  this  poit  are  lumber  and  barley. 
The  lumber  market  here  is  entirely  controlled  by  the  Saginaw  market, 
and  Canadian  markets  do  not  in  the  least  influence  us.  The  Canada 
market,  to  a  great  <'xt<?nt,  is  controlled  by  American  markets,  and  the 
result  is  that  the  Canadian  producer  has  to  conform  his  prices  to  our 
market  figures  here  ;  this  virtually  makes  the  Canadian  pay  the  duties 
on  foreign  merchandise  imported  here,  as  he  is  compelled  to  sell  his  goods 
HO  as  to  enable  the  importer  to  i)ay  the  duties,  and  still  not  overshoot 
the  American  market.  As  the  demand  in  Canadji  is  not  ecpial  to  the 
production,  the  produc<'r  is  cimipelled  to  look  to  a  foreign  market  for 
sale  of  his  merchandise,  jnid  for  this  reason  lie  must  necessarily  regulate 
his  })rices  V>y  that  maikct  to  sell.  The  purchaser  in  buying  always  makes 
allowanci'  for  tiie  duties,  and  tlu^  Canudian  in  his  sales  deducts  the 
amount,  s.nd  thus  in  reality  pays  the  duty  himself." 

''OsWE<U),  July  LVJ,  18G8. 

"The  ctfect  of  the  abrogation  of  the  reciprocity  treaty,  in  my  oi)inion,, 
has  been  the  addition  of  several  millions  of  dollars  to  the  United  States 
revenue,  at  the  expense  of  our  Canadian  friends. 

"  There  never  appeared  to  me  to  be  any  true  reciprocity  in  it,  but  rather 
the  payment  of  a  very  large  sum  to  them  for  something  that  wa,s  of  little 
benefit  to  us.  As  it  now  is,  the  import  duty  is  paid  by  the  Canada 
producer  or  manufa(;turer,  and  not  by  the  American  consumer.  Any 
redu(!tion  in  the  rate  of  duties  on  imjun'tations  from  (Janada.  would 
benefit  them  Just  so  much,  and  would  not  lower  the  market  value  here," 

"BuFFAJ.o,  Dvcemher  18,  1SG8. 

"  The  t(*rmination  of  the  treaty  of  recijtrocity  between  the  United  States 
and  the  Canadian  Provinces,  and  the  subsequent  imposition  of  duties 
under  the  tarifl' enactments  on  articles  of  importation,  has  been  a  source 
of  large  revenue  to  the  United  State's  government,  the  burden  of  which 
has  been  borne  by  the  foreign  producer  or  manufacturer,  and  any  abate- 
ment or  iH'duction  of  rates  would,  of  course,  redound  to  the  advantage 
of  such  producer  or  manufacturer,  and  would  not  tend  to  reduce  the 
value  of  the  article  imj)orted  in  this  market.  Our  market  establishes 
the  iw'ice,  or  rather  limits  the  same,  for  such  jiroducts  or  manufactures 
as  come  into  competition  with  home  products  or  manufactures;  and 
while  flu?  rates  of  duty  under  the  t^iriff,  on  some  articles,  amount  to  a 
prohibition,  as  articles  of  generjd  traffic;  and  while  other  articlCvS  much 
need(Ml  are  admitted  duty  free,  still  tlie  bulk  of  the  importations  into 
this  district  from  our  neighboring  foreign  soil  are  of  such  li  nature  as  that 
they  enter  into  competition  with  the  products  of  our  own  soil,  and  any 
rate  of  duty  established  on  such  articles  of  importation  must  neces- 
sarily fall  upon  the  producer." 


APPENDIX  B. 

CANADIAN   TARIFFR. 

A  conspicuous  point  of  difference'  in  recent  Canadian  tariffs,  compared 
with  the  tariff  of  1859,  is  a  general  reduction  of  five  per  cent,  in  th€ 
duties  on  manufactures. 

The  latest  changes  in  the  Canadian  tariff  were  assented  to  in  May, 


COMMERCIAL    RELATIONS    WITH    CANADA. 


25 


1868. 

barley, 
narket, 
Canada 
md  tlie 
;  to  our 
',  duties 
is  goods 
ershoot 
I  to  the 
rket  for 
'emulate 
s  makes 
Kits  the 


opinion^ 
d  States 

it  rather 
of  little 
Canada 
T.  Any 
a.  would 
lie  here," 

1SG8. 

d  States 
)f  duties 
a  source 
)f  which 
ly  abate- 
vantage 
ucc  the 
iblishes 
factures 
res;  and 
)unt  to  a 
es  much 
ons  into 
e  as  that 
and  any 
t  neccs- 


omparod 
t.  in  the 

in  May, 


t 


1808,  and  enforced  from  April  29,  1S(J8.  The  duty  of  ir>  per  cent,  is  yet 
usually  levied  on  manufactures,  with  special  exceptions,  of  which  the 
character  may  be  seen  on  perusal  of  the  accompanying  list.  Imjmrtant 
changes  have  been  made  in  many  articles  use^l  in  and  on  lailroads.  In 
1851)  a  10  per  cent,  ad  valorem  duty  was  levied  on  railroad  bars,  frogs, 
wrought  iron  and  steel  chairs,  locomotive  and  engine  fraiiics,  axles, 
and  ai)parently  all  articles  made  of  iron  and  used  in  making  niilways  or 
railway  locomotives  and  cars,  &c.  All  these  are  now  admitted  free  of 
duty.  Among  other  articles  charged  with  10  jx  r  cent,  duty  in  ISf)!), 
but  now  entirely  exempt,  are  anchors,  metallic  tubes,  copper  in  bars, 
bobs  or  sheets,  «&c.,  and  other  articles  used  in  and  about  shipping  and 
railroads. 

The  free  list  under  the  tariff  of  1S(IS  is  very  extensive  and  includes 
iloTii',  ciu'ii  nu'al,  and  gruin  of  all  kinds.  There  is  a  moderate  duty  on 
animals;  and  export  (luties<»n  sawlogs,  «S:c.,  repealed  by  the  act  of  bS(;7, 
are  now  not  (udy  levix'ed  but  increased. 

The:  following  is  a  statement  of  recent  changes  in  Canadian  tariffs, 
and  of  the  duties  on  leading  articleSj  especially  with  relcicnce  to  Ameri- 
can interests: 


Articles. 


Act  of  May  11,  Ir^G":'.  i  Act  of  Dec.  21,  1867. 


Auininls : 

Horses per  head.. 

Homed  cuttle do 

Swiiip do j 

Sheep do j 

Butter per  pound . ,.  | 

Chefse do ' 

Cipiirs,  not  over  '^H)  jier  M i 

Cip^fus,  over  8iO  awd  under  S'io  per  M j 

Cipars,  over  $'iO  and  under  §4U  per  M f 

Cigars,  over  ^-V)  per  M ' 

Fish,  smoked  or  salted perpotind..! 

Lard  and  tallow do '. 

Meats,  fresh  or  salted do i 

Malt per  bushel..] 

Oils:  ; 

Coal  and  kerosene,  distilled,  »fec . .  per  pfal . .  1 

Crude  petroleum do : 

Spirits:  j 

IJrandy.  rum,  whiskey.  &C per  gal--j 

(proof  liy  iSykes's  hydrometer. )  ! 

Cordials,  Ac 

Sucar  and  confectionery '< 


Id  00  { 


2  00  ( 
J 


rerfumcry,  fancy   soaps,   proprietary   niedi- 
cines,  ».Vc. 

Leather, -sole  and  upper 

Books,  (fjeiuMally) 

Iron,  (certain  kind  ) 

Type 

Tobacco,  (manutactured,)  except  cij^ars,  and 
including  suulV.  • 


Rice  . . 

Wines 


ooj 
04 

o;? 

y  00 

4  00 

5  00 

6  00 
01 
01 
01 
40 

I.') 
OtJ 

80 

1  -20 
'25  per  cent,  and  spe- 
citic  duty  ot   tiom  I 
cent  to  I-  cent  jiei  lb 
*Jr>  per  cent,  ad  valo- 
rem. 

10  per  cent. 

;')  per  cent. 

f)  per  cent. 

5  ])er  cent. 

f)  per  cent,  and  sjie- 

ciric  tif  15  cents  per 

pound. 

15  per  cent. 
20  per  cent,  and  spe- 
citicof  10  cents  per 
gallon. 


15  per  cent,  ad  valo- 
rem. 

|0  04 

o:{ 

3  00 

4  110 

5  00 

6  00 
01 
01 
01 
40 

10 

06 

80 

I  20 

Formerly  specilic. 

iSame  as  now. 

Same  as  now. 

Free. 

Free. 

15  per  cent. 


Free. 
Formerly  specitic. 


The  free  list  is  very  extensive,  including  drugs,  dye-stuffs,  paints,  (dry 
used  in  manufacturing. 

3h  . 


^fr 


mUUMiiikl  Mlkn^m  WITH  C^AS'AbA. 


1 


Certain  iiiaimfactures  and  products  of  manufacturea  areadniittod  free 
of  duty,  with  a  vi(^w  to  the  eiieourafteineiit  of  other  injuiufaetures,  ship- 
biiildiiiju;-,  raihoads,  &c.  Several  of  tliese  articles,  heretofore  cliarged 
with  duty,  are  now  exempt. 

P'RiiE-CActofMay,  1868.) 
Anchors. 

Boltlllfr  cldtll. 

Cotton  wool. 

Duck  for  Ixjltinp-  and  liose. 

Felt  for  hilts  iiud  lionts. 

J^'ire  eiipiru's,  (sfcain,)  iiiiportod  for  use  of  municipalities. 

Macliincry,  (with  c.  jcptions.) 

Mttiils  : 

linis.s — bar,  rod,  shoet,  and  scrap. 
Cranks  for  stcaiuhoats.  forjrcd  in  the  ron<:;h. 
Crankn  for  mills,  fori,''e<l  in  the  routrh. 

Cop]  er — in  pip,  bars,  rods,  h(dts,  and  sheets,  and  sheathing. 
Iron  ot  the  descriptions  following: 
Scrap,  galvanized,  or  jiig. 
I'liddled,  in  bars,  blonms.  and  billets. 
I5oits  and  siiiUes.  i^alvauized. 
Locomotive  engine  frames,  axles,  cranks,  hoop  iron  or  steel  for  tires  of  wheels,  bent  and 

welded. 
Locomotive  crank  nxle^,  piston-rods,  guidu'  and  slide  bars,  crank  pins,  connecting  rods, 
l^ead  in  slu-et  or  j)ig. 
Litiiarge. 
Kailroad  bars  and  frogs,  wrouglit  iron  or  steel  chairs,  wrought  iron  or  steel  fish  plates, 

and  car  axles. 
Sliafts  for  mills  and  steamboats,  in  the  rough. 
►Spelter,  in  hli'cks,  slieiU  or  jiii:'. 
Steel,  wrought  or  ca^t,  in  bars  and  rods. 
Steel  plates  cut  to  any  fonii,   hut  not  moulded. 
Tin,  in  bar,  blocks,  ]iijr,  or  grumilated. 
Tubes  and  piping,  of  brass,  copper,  or  iron,  drawn. 
Type  metal    in  blocks  or  ])igs. 
Wire,  of  In  ass  or  copper,  ronnd  or  flat. 
Yellow  metal,  in  bolts,  burs,  and  for  sheathing. 
Zinc,  in  sheets,  blocks,  and  pigs. 
Nails,  composition  or  sheathing. 
Oakum. 

Piinting  inks,  and  presses,  except  portable  hand-presses. 
Prunella. 

Plush,  for  hatters'  use, 
Kags. 
Shi])s'  biniuicle  lamps. 

blocks  and  patent  bushes  for  blocks, 
bunting. 

cables,  iron  chain,  over  half  an  inch,  shackled  or  swivelled,  or  not. 
com])asses. 
dead  eyes, 
dead  lights. 
deck  pings, 
knees,  iron. 

masts  or  parts  of,  iron.  , 

pumps  and  pump-gear, 
riders,  iron 
shackles, 
sheaves. 

signal  lamps.  »  ^ 

steering  apparatus, 
travelling  trucks, 
wedges, 
wire  rigixing. 
And  the  following  articles,  when  used  for  ships  or  vessels  only,  viz  : 
Cables,  hei.ip  and  grass. 
Cordage. 

Sail-clotli  or  canvas,  from  No.  1  to  No.  6. 
Varnish,  black  and  briaht. 


p  admittod  free 
ifaclures,  sliip- 
tofore  charged 


wlieels,  bent  and 
counectiiijT  rods. 

stool  fisli  plates, 


COMMERCIAL   RELATIONS   WITH    CANAD^ 

/' ^^*Va?4^™'^"''J'"  S'^r^"'^"^^  ''''^  admitted  free  of  duty  under  the  a«t 
of  May,  1808,  many  lower  duties  having  been  repealed.    Among  them  are : 

Broom  corn. 
Coal  and  coke. 

Ejrg's. 

Flour,  wheat,  and  rye. 
Fire-wood. 

Fish,  fresh   (not  excluding  oysters,  &c.,  in  cans  or  kees.) 

V  urs,  (uiulressed.)  ^     ' 

Grain,  of  all  kinds. 

Hay. 

Hemp,  (undressed.) 

Hides. 

Hops. 

Horns, 

Indiai)  meal. 

Knots, 

Salt. 

8o',m1s. 

Tar  and  turpentine,  (except  spirits  of  turpentine.) 

J  10  OS. 

Von-otulil(>s,  (culinary  ) 

Wood  of  all  kinds,  ("unmanufactured.) 

Wool. 

EXPORT   DUTIES, 

Shinerlo  l)o]t.sporcord  of  128  cubic  foot.  a;i  nn 

Stave  holts  per  cord  (if  1  -js  cubic  tVot ^j     [. 

Pine  and  oak  locr.s  per  J,(JU() ,,      ' 

Spruce  logs  per  l,(k/U .'; ^  ^^ 


® 


